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The price of fuel is impacted by many variables making predictions difficult. However, there are certain variables that are in play today, which allows us to extrapolate and extend those trend lines into the next calendar-year and interpret possible outcomes.
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The COVID-19 pandemic divided the fleet market into essential and non-essential businesses, causing hundreds of thousands of company vehicles to sit idle from mid-March to mid-May. The economic shutdown caused miles-driven to plummet.
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National average gas prices dropped to $2.16 as decreases in U.S. gasoline demand, supply and imports pushed the national and 44 state gas price averages cheaper on the week.
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The national average for gas prices dropped to $2.18, which 48 cents cheaper than mid-September last year, and is being driven by low oil prices.
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Topics mentioned in this video include: A look at the July Consumer Spending Report; Hurricane Laura’s near miss in potentially damaging Gulf Coast refineries; ongoing stability in fuel prices; measuring fleet vitality real-time with total miles driven; and an update on the wholesale market.
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Gas prices are at $2.18, maintaining prices that have stabilized for the past few weeks and are currently the same prices as a month ago and are 41 cents cheaper than a year ago.
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The national gas price average has pushed only as expensive as $2.20 since the beginning of the pandemic, AAA said. In the last four weeks, motorists have seen the national average slowly decrease, down to today’s average.
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A majority of states saw gas prices drop by one to two cents or saw no change at the pump. Though low, the volatility was enough to drive the national average down a penny from last Monday to $2.17.
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Gasoline prices held steady at $2.18 as the majority of state averages saw minimal impact at the pump, maintaining overall price stabilization.
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As COVID-19 case numbers surpass 4 million, demand for gasoline is weakening across the country. The lower demand contributed to a cheaper national average on the week; this is the first time since late April that the national average has declined.
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