Energy Economy

8 Consecutive Weeks of Falling Gasoline Prices

The national average price for a gallon of regular gasoline fell to $1.78 on Monday, down by five cents week over week. The lowest prices in the country have tumbled from around $1.34 a week ago to about $1.26 on Monday morning.

Gas prices now average below $2.00 a gallon in 38 states. More than 120,000 gas stations across the country are selling gasoline for less than $2.00 a gallon on Monday, and nearly 40,000 are selling it for less than $1.50 a gallon, according to a recent report from GasBuddy. The most dramatic price changes continue to occur in the volatile Midwestern region.

West Texas Intermediate (WTI) crude oil traded down about more than 40% Monday morning to $10.84, after closing Friday at $18.27. International benchmark Brent crude traded down more than 5.1% at $26.65.

Gas prices average below $1.00 a gallon in Appleton and Oshkosh, Wisconsin, and in Henderson, Kentucky.

Patrick DeHaan, head of petroleum analysis at GasBuddy, commented:

With another drop in the national average from a week ago, we’ve made it eight straight weeks of decline, and for the first time in GasBuddy’s 20 year history, we have [three] cities that are averaging under $1 per gallon. That’s right- not a single station under $1, but the entire city average. Truly unprecedented demand destruction has been dismantling expensive gas prices everywhere.

DeHaan also suggested that gas prices should remain low once people return to work:

With oil again at new multi-decade lows, we still have room for prices to fall nearly countrywide, though areas with lower prices will see little decline, take Wisconsin for example, while higher priced states like California have the most room to decline. With the wounds to the oil industry growing deeper, it’s becoming more likely that even after most Americans return to work, there will be a hangover to the low prices that many motorists will eventually be able to take advantage of.

The five states where drivers are paying the most for gas are Hawaii ($3.55), California ($2.77), Washington ($2.37), Oregon ($2.37) and Nevada ($2.22). Only 12 states are reporting an average of more than $2.00 a gallon.

The five states where gas is cheapest are Wisconsin ($1.26), Oklahoma ($1.36), Ohio ($1.41), Michigan ($1.42) and Kentucky ($1.43).

Compared to last month, the national average is down about 33.4 cents per gallon, and compared to last year, prices are down about $1.07 per gallon.