Energy Economy

Gas Prices Fall for Ninth Consecutive Week

The national average price for a gallon of regular gasoline fell to $1.74 on Monday, down by 4.4 cents week over week. The lowest prices in the country have tumbled from around $1.26 a week ago to about $1.20 on Monday morning.

Gas prices now average below $2.00 a gallon in 38 states. More than 125,000 gas stations across the country are selling gasoline for less than $2.00 a gallon on Monday, and nearly 50,000 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 more than 25% Monday morning at $12.60 a barrel, after closing Friday at $16.94. International benchmark Brent crude traded down more than 5.1% at $26.65 a barrel. Last Monday, WTI crude oil closed trading at an all-time low of negative $37 a barrel.

Gas prices average below $1.00 a gallon in Oshkosh, Wisconsin, and in Henderson, Kentucky. The average cost at the most expensive 10% of stations stands at $2.69 per gallon, down nine cents week over week, while the lowest 10% average $1.16 per gallon, down three cents. The median U.S. price is $1.65 per gallon, four cents lower than last week and about nine cents lower than the national average.

Patrick DeHaan, head of petroleum analysis at GasBuddy, commented: “Unsurprisingly, for the ninth straight week average gas prices have fallen across every state in the country, with more downward potential likely, especially in today’s highest priced states. … [G]asoline prices will likely remain subdued until meaningful demand for petroleum returns, and that may not be for weeks or perhaps longer. In addition, every day until OPEC’s oil production cut come into force May 1 is another day where global supply drastically outpaces demand, flooding the market with more oil, prolonging the time gas prices will remain low- something that easily could last into the summer, when motorists may be better positioned to take advantage.”

The five states where drivers are paying the most for gas are Hawaii ($3.31), California ($2.72), Washington ($2.34), Oregon ($2.27) and Nevada ($2.19). Only 12 states are reporting an average of more than $2.00 a gallon.

The five states where gas is cheapest are Wisconsin ($1.23), Oklahoma ($1.35), Michigan ($1.38), Missouri ($1.40) and Kentucky ($1.40).

Compared to last month, the national average is down about 22.6 cents per gallon, and compared to last year, prices are down about $1.12 per gallon.

While the COVID-19 pandemic appears to have peaked in parts of the United States, the disease continues to spread rapidly in many states.