“The great collapse in oil demand” – how low will gas prices drop?
Published 7:03 am Monday, March 23, 2020
Gas prices have spent virtually all of March marching lower, with the drop continuing as the coronavirus destroys oil demand globally, analysts says.
Patrick DeHaan, head of petroleum analysis for GasBuddy, said the drop is leading to the lowest oil prices seen in 18 years, paving the way for an additional 35-75 cent per gallon drop at most stations in the weeks ahead.
Texas gas prices have fallen 10.4 cents per gallon in the past week, averaging $1.86/g today, according to GasBuddy’s daily survey of 13,114 stations.
Gas prices in Texas are 30.3 cents per gallon lower than a month ago and stand 53.5 cents per gallon lower than a year ago.
“I don’t think I’ve ever seen such a collapse in prices, even including the Great Recession,” DeHaan said. “What we’re witnessing is easily going to go down as the great collapse in oil demand, and for motorists hurrying to fill up today, they’re wasting their money as prices will continue to drop in the days ahead.”
According to GasBuddy price reports, the cheapest station in Texas is priced at $1.39/g today while the most expensive is $3.19/g, a difference of $1.80/g.
The lowest price in the state today is $1.39/g while the highest is $3.19/g, a difference of $1.80/g.
“Gas stations are passing along the drop several weeks behind, and there’s plenty more room for prices to drop, putting 99 cents per gallon prices as a strong possibility for perhaps many more stations than we previously anticipated,” DeHaan said. “This is truly an unprecedented turn of events.”
The national average price of gasoline has fallen 12.8 cents per gallon in the last week, averaging $2.08/g today.
The national average is down 38.5 cents per gallon from a month ago and stands 54.7 cents per gallon lower than a year ago.
Historical gasoline prices in Texas and the national average going back ten years:
March 23, 2019: $2.40/g (U.S. Average: $2.63/g)
March 23, 2018: $2.36/g (U.S. Average: $2.60/g)
March 23, 2017: $2.10/g (U.S. Average: $2.29/g)
March 23, 2016: $1.84/g (U.S. Average: $1.99/g)
March 23, 2015: $2.22/g (U.S. Average: $2.42/g)
March 23, 2014: $3.33/g (U.S. Average: $3.53/g)
March 23, 2013: $3.55/g (U.S. Average: $3.68/g)
March 23, 2012: $3.77/g (U.S. Average: $3.89/g)
March 23, 2011: $3.42/g (U.S. Average: $3.55/g)
March 23, 2010: $2.68/g (U.S. Average: $2.80/g)
Neighboring areas and their current gas prices:
• Midland Odessa – $1.98/g, down 8.5 cents per gallon from last week’s $2.07/g.
• San Antonio – $1.77/g, down 8.9 cents per gallon from last week’s $1.85/g.
• Austin – $1.78/g, down 11.5 cents per gallon from last week’s $1.90/g.