The national average for a gallon of gasoline dropped to $1.99, AAA announced Tuesday.
It’s the first time in four years that average prices for gas fell below $2 due to two global problems. The global coronavirus pandemic has suppressed oil demand and a crude oil price war between Saudi Arabia and Russia have combined to lower crude oil to less than $20 per barrel, the lowest price since 2002, AAA reports. And the price for gas is expected to drop even more.
“AAA expects gas prices to keep dropping as cheap crude combines with the realities of people staying home and less demand for gas,” Jeanette Casselano, AAA spokesperson, said in statement. She added that 68% of gas stations in the U.S. are selling gas at $1.99 or lower.
Experts advise against unnecessary travel in many states, and AAA’s manager for repair systems says gas typically won’t spoil for a few weeks.
A Speedy gas station in Cleveland was selling regular gas for $.69 per gallon, while diesel was still at $2.47, according to The Drive. Oklahoma is the state with the cheapest gas at $1.55. On the other hand, California and Hawaii sell gas for above $3, on average.
The steep decline in demand caused by stay-at-home measures due to the coronavirus pandemic, as well as a domestic surplus of winter-blend gasoline, could lead to gas prices dropping to a national average of $1.75, AAA predicts.
Meanwhile, the Trump administration finalized its rollback of vehicle emissions standards that will result in 2 billion additional barrels of oil being consumed, according to Automotive News.