Have you heard the latest coronavirus news? It’s true! We just witnessed gas prices fall under $2 per gallon due to the pandemic, and we don’t see it coming up any time soon. There has been a massive drop in price for oil, which has made gas prices plummet to rock bottom. In regular times, this would be great news. Unfortunately, this summer might not be a busy travel season, so people won’t be able to take advantage of it. This usually is when we see higher gas prices.
Why Did Gas Prices Fall?
The COVID-19 epidemic is affecting the economy in many ways, and this is just one of the things changing because of the outbreak. The gas price went below $2 on Tuesday, even though this hasn’t happened in four years. Plus, the national average of $1.99 is now 11 cents lower than a week ago, and 69 cents cheaper than a year ago.
Most experts didn’t expect it to fall below $1. However, it did. According to GasBuddy, a fuel price tracking app, some states are only charging $1 or less per gallon of fuel. Wisconsin has stations charging 95 cents.
The cost of oil has dropped into the $20 range, because of the global economic shutdown. According to the Oil Price Information Service, the amount of oil is at an 18 year low. Approximately 100,000 gas stations are only charging $2 or less for every gallon and 29 out of 50 states have an average of less than $2.
What Will Happen to Fuel Prices?
Sadly, for most people, it’s impossible to take advantage of this great bargain because the majority of Americans have a stay at home order. This order only allows residents to drive for essential items. With the lack of driving occurring, the fuel only continues to be stockpiled, leading to further issues.
This isn’t the only disruption to the economy. Did you hear that the 2020 Detroit Auto Show was canceled due to COVID-19?