The declining demand for gasoline leads to the lowest oil prices in years.
A gas station in Kentucky offers fuel for less than a $ 1 a gallon. Lane 7 was found in the City of London and sells you regular octane BP gasoline for just 99 cents per gallon. It is the first time in years that fuel is so cheap.
About a week ago, the GasBuddy price tracker predicted some US stations. USA According to WKYC in Cleveland, Ohio, they would soon drop below one dollar per gallon. GasBuddy reported that BP’s Kentucky station was the first to reach this mark, although other stations may be very close.
At $ 2.14 per gallon, current average gasoline prices in the U.S. are 44.6 cents lower than the previous year. However, not all drivers are so happy. In San Francisco, drivers pay $ 3.39, just 13 cents less than last year, and the Los Angeles average of $ 3.32 is just 8 cents lower than last year.
In any case, the drop in gas prices is the result of a significant drop in demand as more and more people cut back on their absence after the coronavirus pandemic. And it’s not just American drivers who restrict their driving. For example, you need a convincing job or a medical reason to be in Italy, and lying about it can result in fines and prison terms.
At $ 25.37 a barrel, crude oil is the cheapest since November 2001 (adjusted for inflation), according to the MacroTrends investment research platform. Even without taking inflation into account, one would have to go back to May 2002 to find cheaper oil prices.
Cheaper fuel and the question of spending time on public transport could tempt some to travel more often by car. However, with larger metropolitan areas ordering bars and restaurants to shut down and many jobs offering telecommuting due to the coronavirus pandemic, gas prices could drop further.