The national average gasoline price dropped below $2 for the first time in four years, attributed to the COVID-19 pandemic and the crude oil price war between Saudi Arabia and Russia.
The current price level plummeted to $20/barrel, a closing price not seen since 2022, according to AAA. The national gas price average was $1.99, and AAA expects gas prices to push cheaper, with the national price average hitting $1.75 or less in April.
"AAA expects gas prices to keep dropping as cheap crude combines with the realities of people staying home and less demand for gas,” said Jeanette Casselano, AAA spokesperson. “Today, motorists can find gas for $1.99 or less at 68% of gas stations in the country."
Across the country, state averages are less than $3/gallon except in Hawaii ($3.36) and California ($3.05), said AAA. Elsewhere in the U.S., 29 states have regular gas price averages under $2, with Oklahoma ($1.55) having the cheapest in the country.
While demand is diminishing, COVID-19 is not impacting the U.S. gasoline supply. The U.S. has an unusual amount of winter-blend gasoline still available for this time of year, which has caused the EPA to extend the sales of this blend to May 20.