ST. LOUIS — Gas prices across the country are lower since the start of the COVID-19 pandemic.
We took some of your questions about the gas prices to an expert.
The below responses come from AAA spokesperson Nick Chabarria.
We know there is a pandemic and fewer people are out driving. Is that the cause of the low gas prices?
Supply and demand has been the driving force behind low gasoline prices since the start of the COVID-19 pandemic. With folks following stay-at-home orders and refiners producing excess gasoline, growing gasoline inventories and low demand are largely responsible for the recent drop in prices at the pump. The Energy Information Administration (EIA) reports current gasoline demand at 5.3 million barrels per day, a slight increase from last week, but still an extremely low rate compared to last April’s 9.45 million barrels per day average.
Is there a time frame where you would expect them to jump back up?
With so much uncertainty surrounding the pandemic and the varied state and local responses, it’s difficult to predict exactly when prices will increase. However, some areas could see minimal fluctuation at the pump in coming weeks if demand jumps as businesses are given the green light to reopen.
Should people be going out now to get gas, or are they OK to wait?
AAA forecasts that the national average will continue to decrease into next month, possibly dropping as low as $1.65. We haven’t seen gas prices that cheap since January 2009.
Are certain areas seeing lower prices (Missouri versus Illinois)?
The current gas price average for Missouri is $1.486 for a gallon of regular unleaded fuel, according to the AAA Gas Prices. This compares to $1.470 yesterday, $1.521 a week ago, $1.795 a month ago, and $2.586 a year ago.
In Illinois, drivers are seeing a $1.796 average for a gallon of regular unleaded fuel. This compares to $1.799 yesterday, $1.835 a week ago, $2.082 a month ago, and $3.018 a year ago.
Locally, the average here in St. Louis is $1.657 and the average in East St. Louis is $1.807.
Any advice for drivers on how they should approach the price drop?
Throughout the pandemic, we’ve seen prices at the pump follow supply and demand. Once the U.S.’s current excess supply is used up and more drivers return to the roadways, folks can expect to pay a little more for gas.
If everyone runs out to fill up will that impact the timing for prices to go back to where they were?
Demand for gasoline could minimally fluctuate as state and local stay-at-home orders expire and folks return to work. However, it is unknown when prices will return to pre-pandemic levels. However, for example in Missouri, the average price for a gallon of gas today is $1.10 cheaper than this time last year. Drivers will likely not see prices return to 2019-levels anytime soon.
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