National Gas Price Average Falls to Under $2 Per Gallon

Given the numerous challenges facing Americans today, it seems any piece of good news is welcome. With that in mind, drivers may be pleased to know that gas prices are falling. In fact, new data shows that the average price just dropped below a major milestone.

According to the app GasBuddy, the price for a gallon of gasoline fell to a national average of $1.97 this week. Not only does that put it below the $2 threshold but also marks a more than 10¢ drop from the week prior. Furthermore prices have now trended downward for five straight weeks and 38 consecutive days.

Looking even closer at GasBuddy’s data, more than 100,000 stations across the country currently show prices below $2 a gallon — with 6,000 selling for under $1.50. Meanwhile, the average among the 90th percentile of stations (those that are the most expensive) came in at $2.92. That’s down 11¢ from last week, putting the drop in line with the larger national average.

Under normal circumstances, this dip in gas prices would be welcome during this time of year as motorists hit the road for spring break. However, between travel restrictions and more than three-quarters of American currently under some degree of lockdown order, demand for gasoline has not been nearly as high as usual. That said, falling prices are surely welcome among essential workers who are still reporting for duty as well as for those who might need to fill up in order to head out for supplies.

Commenting on the latest price data and the unique circumstances surrounding them, GasBuddy’s head of petroleum analysis Patrick DeHaan explained, “[T]he first week of the national average being under $2/gal for the first time in over four years as motorists park their cars and shelter in place, leading to an unprecedented drop never before seen in U.S. gasoline demand, causing prices to sink like a rock.” Looking ahead, he added, “With the nation continuing to be under siege from the coronavirus and millions staying parked at home, there’s quite a bit more downside that’s in the pipeline coming in the weeks ahead. We could easily see the national average fall 50 cents to a dollar per gallon, while pricey states like California will see the biggest drops to come, playing catch up to the drop that has seen twenty nine states average gas prices fall under $2.”

Sadly, even this slice of good news comes with a warning about safety. For those filling up, DeHaan advised, “Motorists should continue to be vigilant if they need to fill their tanks- bring hand sanitizer and potentially wipes.” With that out of the way, here’s hoping that these low prices hang around long enough for consumers to take advantage of them once things return to some form of normal.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Marqeta Expands Credit Program with New APIs and More

A FinTech that specializes in creating credit card experiences is rolling out some new features. This week, Marqeta announced what it calls a "significant expansion" of its credit platform. This includes more than 40 new credit APIs that will further help clients craft and launch their own credit card products. Additionally, the company notes an updated intuitive dashboard. Using this platform, businesses can create unique card options that can not...

PayPal Launches Small Business Credit Card with Flat 2% Cashback

The popular platform PayPal is rolling out a new product built specifically for small businesses. Today, the FinTech announced the launch of The PayPal Business Cashback Mastercard. The new card will be issued by WebBank and marks the first time PayPal has offered a business credit card. With the PayPal Business Cashback card, business owners will be able to earn 2% cashback on all purchases. This earning rate is not...

Wells Fargo Unveils New Autograph Rewards Visa Card

A new rewards credit card is on the way from Wells Fargo. Today, the bank introduced its Autograph card, which expands the company's refreshed card portfolio. In terms of rewards, the Wells Fargo Autograph Card will earn 3 points per dollar spent in a number of categories. These include restaurants, travel and transit, gas stations, select streaming services, and phone plans. All other purchases will earn 1x points. Beyond the...