Gas Price Hits 99 Cents at One Station as Nationwide Average Plummets
A gallon of gasoline costs less than a dollar at a gas station in Kentucky.
A Spur 7 BP station in London, Kentucky, dropped its price to 99 cents per gallon, according to Gas Buddy.
The price was confirmed by Gas Buddy petroleum analyst Patrick De Haan.
99 CENTS IS HERE: Just got off the phone to verify, but a BP station in London, KY has dropped its price to 99 CENTS PER GALLON. pic.twitter.com/S7yx8TNSRg
— Patrick De Haan ⛽️? (@GasBuddyGuy) March 19, 2020
However, motorists shouldn’t rush to the station in search of a good deal. An employee told Fox News Auto that the station was currently out of fuel and did not know when the pumps would be open again.
“We’re in uncharted waters due to demand plummeting in light of the coronavirus situation, and yesterday oil prices fell to their lowest level since 2002 in a sign of the deep distress our economy is facing,” De Haan told KTRK-TV.
An American Automobile Association survey released Monday showed that the Sunday trough in oil prices was already hitting consumers, with some parts of the county having gasoline that was selling for under $2 per gallon.
“Texas ($2.06) has the cheapest average in the region and the nation. Gas can be found for $2/gallon or less at 24 percent of gas stations throughout the 11 South and Southeast region states. Oklahoma (51 percent) and Texas (47 percent) have the highest percentage of gas stations selling gas for less than $2/gallon,” the AAA report read.
In Florida, where AAA said gas was already selling at seven cents less this week than last week, predictions expected even lower prices were coming.
“At the rate fuel prices are falling on the stock market, Florida drivers could easily begin seeing sub-$2 gasoline this week,” AAA spokesman Mark Jenkins said, according to WOFL.
“The only potential upward pressure on pump prices is spring maintenance season. If the state average eventually drops below $2 per gallon, it would be the first time in four years. How long this holds or how low prices go will rely on where stock market prices go from here.”
In an appearance on the FOX Business Network, De Haan predicted all states will see gasoline sell for under $2 per gallon.
“No matter where you are, even California, we are going to see sub-$2 prices and a lot more decreases coming over the next few weeks of another 35 to as much as 75 cents a gallon.”
One major side effect of this economic free-fall is that oil and gas prices are at their lowest point in 18 years. Some areas are reporting prices of 99 cents per gallon. We asked Gas Buddy Analyst Patrick De Haan: How low will these prices go? #Gas #Oil #Energy #VarneyCo pic.twitter.com/c9dXcRufyj
— Varney & Co. (@Varneyco) March 19, 2020
“For all those delivery services, the insta-carts of the worlds, alcohol delivery — I’m sure a lot of Americans are making use of that — those delivery services certainly have the ability to cut their costs based on the low fuel costs.”
In a blog post on GasBuddy, De Haan said that the simplest way to explain why gas prices are dropping is because oil prices are dropping: It all comes down to supply and demand.
“The demand for oil has dropped tremendously week-over-week, while supply remains high,” he wrote.
“The coronavirus has caused countries to be in lockdown, limiting driving, flying and overall movement in order to contain the spread. This means very little need (demand) for oil.”
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