Coronavirus’s impact on gas prices has been tremendous, as Florida gas prices continue to drop, with more than a dozen states selling gas for under $1 a gallon. According to AAA, with the Coronavirus pandemic keeping consumers at home, they are driving less, bringing down the national average gas price down from what is a few weeks ago. Drivers were paying $2.83 a gallon in April, last year.
According to the fuel-savings app, GasBuddy, the national average in April was $1.78. The 13 states with gas under $1 per gallon were: Arkansas, Colorado, Iowa, Kansas, Kentucky, Michigan, Mississippi, Missouri, New York, Ohio, Oklahoma, Virginia, and Wisconsin.
According to GasBuddy’s April 15 report on consumer’s fuel buying trends, there was a 20% drop in gallons purchases in March 2020 compared to March 2019. The most recent data is even steeper, GasBuddy found, with transactions in April showing that gasoline demand has eroded by 50% to 70% over levels in late February and early March.
Gas prices due to Coronavirus will see a continued drop as the number of cases in Florida spike. The AAA auto club said a gallon of regular unleaded gas in Florida in June averages $2.03 gallon.
AAA spokesman W.D Williams said supply and demand would lead to lower fuel prices if more businesses are forced to close, and people are told again to work at home because of the spike in cases. “The trends and pressures right now are to slow the gasoline price increase, so we could see gasoline prices below $2 per gallon again if the trends with the COVID pandemic continue to rise.”
In May, the average gasoline price was $2.183, which is higher than last month but still down quite a few cents over the past year. Florida’s most expensive gas is found in West Palm Beach, while the state’s cheapest area to fill up in Fort Myers.
“The more people work from home, and the more people don’t drive, that’s less gasoline consumed. The market is just going to take over from there. We are going to see lower gas prices in Florida. They could dip below $2 a gallon again.”
GasBuddy also found that in six states – Wisconsin, Kentucky, Michigan, Oklahoma, Minnesota, and Illinois – gas prices are lowest in more than a decade. Patrick DeHaan, head of petroleum analysis for GasBuddy, said in a blog post-Friday that five of the six states hadn’t seen gas prices this low in over 15 years. For Illinois, the state average of $1.77 hasn’t been this low since November 2008.
DeHaan said chances are good. The national average could “eventually drop under the 2008/2009 low as well.” In late December 2008, the national average was $1.59, according to GasBuddy. “I fully expect that as many as half of the nation’s states will ultimately see prices fall to at least decade lows, with perhaps most of them ultimately falling to lows not seen since the early 2000s,” DeHaan said.
Yet with some parts of the country planning to reopen soon, are consumers expected to take advantage of the low prices? Well, we can’t be sure about that, but we can help you with great deals on car prices – brand new or certified used.
Drop by Car Factory’s Miami or Hollywood outlets, where we ensure regular sanitization of both our locations, strict mask usage, and test-drive any car you like. You can also book an appointment by calling us on 786-406-6234 or visit our website.
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