The Week

Gas prices spent another week decreasing at pumps, both locally and nationally. Pump prices in the District and across the Washington, D.C. metro area are at least 36 cents lower than this time last year. Drivers are seeing some stations selling gas for under $2. Pump prices continue to decline around the country as oil prices have decreased significantly in response to the increasing public health and economic impact of COVID-19 and the crude price war between Russia and Saudi Arabia. 

On Monday, the cost of gasoline dropped below $2 a gallon at more than 40,000 filling stations across the nation. That compares to 15,000 gas stations a week earlier. At the beginning of the week, 11 states had statewide gas price averages of $2 or less per gallon. By Friday, 19 states, including Virginia, posted statewide averages of $2 or less per gallon. Two-thirds of all states saw double digit drops in pump prices on the week. There are 121,446 gas stations across the nation. Cheaper gas will save consumers billions of dollars this year.

Today’s national gas price average is $2.17, down 13 cents in the last week, down 28 cents in the last month and down 41 cents from this time last year. The national average has not dropped to this level since December 2016.

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 $22.53 per barrel, $9.20 lower than last Friday’s close. Crude prices increased Thursday after reports emerged that the U.S. is attempting to intervene in the crude price war between Russia and Saudi Arabia. According to reports, the Trump administration may threaten Russia with sanctions and is using diplomatic pressure on Saudi Arabia. Additionally, crude prices increased after the U.S. Department of Energy announced that it would request $3 billion from Congress to purchase crude oil for the Strategic Petroleum Reserve and the U.S. Treasury Department suggested that the federal government should purchase $20 billion in oil to prop up prices. With limited storage capacity and uncertainty around how much time it may take to stop COVID-19, the ability of these efforts to sustain higher crude prices is highly uncertain.

The Weekend

“COVID-19 has pushed gas prices down dramatically for the last 10 days with some states seeing drops of two cents or more in one day,” says John B. Townsend II, manager of Public and Government Affairs for AAA Mid-Atlantic. “AAA expects gas prices to continue this downward trend, with the likelihood of the national average hitting $2 per gallon before the end of March.”

The Week Ahead

Crude prices could continue to decrease as global demand is likely to slump as countries throughout the world face quarantine. In the U.S., less demand in the coming weeks could push pump prices even lower, as Americans drive less due to working from home and school closures.

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, March 27, 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