Gas prices could hit 99 cents in some states due to coronavirus and supplies, expert says
Gas prices have been trending sharply downward for the past few weeks, but could go much lower according to GasBuddy.com.
Gas Buddy analyst Patrick De Haan said on Monday that the national average could soon hit $1.99, with $1.49 on the horizon and some stations potentially pricing a gallon of regular as low as 99 cents.
The last time prices dropped below $1.60 was in December 2008 during the financial crisis, after falling from a July high of $4.10.
The current plummeting prices are due to a perfect storm of a recent increase in production in Saudi Arabia and Russia and the dramatic decrease in demand caused by measures to control the spread of the coronavirus (COVID-19) around the world.
The U.S. average hit $2.24 on Tuesday, down $.20 from a month ago, with Oklahoma prices the lowest at $1.84 and Hawaii highest at $3.47. Ten states currently have prices below $2.00.
California’s price remains the highest in the continental U.S. at $3.29, but De Haan said even thee it is likely to hit $1.99 in the coming weeks if current trends continue.