The Week

As residents in the District of Columbia and Washington, D.C. metro area stay close to home and vehicle usage has dropped to essential trips only, demand for gasoline and gas prices have dropped. Pump prices across the area are about 50 cents lower than this time last year. Area gas prices have dropped about 30 cents since March 1.

By March 20, the price of a gallon of gasoline dropped below $2 in 19 states, including Virginia. As of yesterday, 24 state posted averages under $2 per gallon. Overnight, average pump prices across Virginia dipped to $1.89 per gallon.

The national average retail price for a gallon of unleaded regular is poised to fall below $2 for the first time in four years. Demand destruction is at hand with traffic falling dramatically on roads and highways across the Washington metro area and the nation.

Today’s national gas price average is $2.05, down 12 cents in the last week, down 41 cents in the last month and down 62 cents from this time last year.  

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $21.51 per barrel, 92 cents lower than last Friday’s close, down 52% in the past month and down $39.67 (65%) since the beginning of the year. Pump prices continue to decline around the country as oil prices have decreased significantly in response to the increasing public health, financial and economic impact of COVID-19 and the crude price war between Russia and Saudi Arabia. Volatility in the oil market continues as the market weighs the potential benefits of stimulus efforts by policymakers around the world against the demand destruction caused by fallout from the rapid spread of the coronavirus. The head of the International Energy Agency said that oil requirements around the world may drop by 20 percent as three billion people are in lockdown.

The Weekend

“The national average price of unleaded regular gasoline will drop to $2 per gallon soon, as pump prices continue to drop across the nation and the region. Demand for both crude oil and retail gasoline continues to decrease as fewer drivers are on the road, causing local and national gas prices to drop to levels not seen in years,” says John B. Townsend II, manager of Public and Government Affairs for AAA Mid-Atlantic. “As the price of crude oil drops to levels not seen since the early 2000s, gasoline prices are following suit.”

The Week Ahead

Free-flow travel speeds are exceeding the marked speed limit on the most congested interstates and highways across the Washington metro area. Across the metro area, “AM travel speed increased from 6% to 32% in the week beginning Friday the 13^th until Friday the 20^th,” an INRIX study shows. Meanwhile, “PM travel speed increased from 22% to 54% across the region in the same span of time,” INRIX explains.

The last time the national average for a gallon of regular unleaded gasoline was under $2 was more than four years ago. The District of Columbia last saw prices under $2 in February 2016 while prices in the Washington, D.C. metro area had dipped under $2 in December of 2015.

AAA has a variety of resources to help motorists save on fuel:

• Shell Fuel Rewards Program for AAA Members: (https://www.AAA.com/Shell) gives AAA members nationwide a discount on gasoline at Shell stations when they join the Fuel Rewards® program.
• Fuel Price Finder (https://www.AAA.com/fuelfinder) locates the lowest fuel price in your area. 
• AAA Gas Cost Calculator (https://gasprices.aaa.com/aaa-gas-cost-calculator/) helps budget travel expenses. 
• TripTik Mobile (https://www.aaa.com/mobile) plots fuel prices along your travel route. 
• AAA's Member Rewards Visa® Credit Card (https://www.AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases.          

AAA is the most comprehensive resource for gas prices.  Unlike the Lundberg Survey of 7,000 gas stations, AAA reports reflect actual prices from credit card transactions at more than 100,000 gas stations in the U.S.

Next Weekend Gas Watch: Friday, April 3, 2020

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AAA provides automotive, travel and insurance services to 60 million members nationwide and nearly 82,000 members in the District of Columbia.  AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years.  The not-for-profit, fully tax-paying member organization works on behalf of motorists, who can now map a route, find local gas prices, discover discounts, book a hotel and track their roadside assistance service with the AAA Mobile app for iPhone, iPad and Android. For more information, visit  https://aaa.com