March 16, 2020 - As crude oil prices trend close to $30/bbl, Americans are seeing pump prices plummet across the country. On the week, gas price averages in 35 states decreased by double-digits, pushing the national average to $2.25, the cheapest price point of the year.
“The national gas price average is 13 cents cheaper on the week and nearly 20 cents less than the beginning of the month. These are significant decreases in just 7 and 16 days,” said Marilyn Buskohl, AAA spokesperson. “AAA expects gas prices to continue trending cheaper, with the high likelihood of the national average hitting $2/gallon before the end of March.”
South Dakota Gas Prices
Today | $2.20 |
Yesterday | $2.24 |
Last week | $2.30 |
Last month | $2.35 |
Last year | $2.47 |
During this uncertain time of COVID-19, gas prices are declining despite increasing gasoline demand and decreasing U.S. stock levels.
Quick Stats
- The nation’s top 10 largest weekly decreases are: Ohio (-27 cents), Kentucky (-21 cents), Michigan (-21 cents), Wisconsin (-21 cents), Indiana (-19 cents), Illinois (-19 cents), Oklahoma (-15 cents), Iowa (-15 cents), Maine (-15 cents) and Minnesota (-15 cents).
- The nation’s top 10 least expensive markets are: Oklahoma ($1.92), Texas ($1.96), Mississippi ($1.96), South Carolina ($1.97), Ohio ($1.97), Indiana ($1.97), Missouri ($1.98), Kentucky ($1.99), Louisiana ($2.00) and Alabama ($2.00).
Great Lakes and Central States
Some of the largest weekly pump price savings in the country can be found in the Great Lakes and Central states. Eight out of the top 10 largest weekly decreases are states from the region: Ohio (-27 cents), Kentucky (-21 cents), Michigan (-21 cents), Wisconsin (-21 cents), Indiana (-19 cents), Illinois (-19 cents), Iowa (-15 cents) and Minnesota (-15 cents). All states in the region saw double-digit decreases, with South Dakota (-10 cents) seeing the smallest decrease on the week.
With the substantial drops at the pump, state gas prices in the region are relatively cheap, ranging from as low as $1.98 in Missouri to a high of $2.30 in Illinois.
With a draw of 1.8 million bbl, the Great Lakes and Central states region saw its first substantial drop in gasoline stocks in two months, according to the Energy Information Administration’s latest report. At 58 million bbl, stock levels remain healthy and in line with levels this time last year. If stocks were to decrease again in the coming week that would traditionally mean a pump price increase, but given current trends it’s more likely gas prices would decrease.
Oil Market Dynamics
At the close of Friday’s formal trading session on the NYMEX, WTI increased by 23 cents to settle at $31.73. Fears about COVID-19 and the crude price war between Russia and Saudi Arabia pushed crude prices lower last week. After President Trump announced that the U.S. Department of Energy would purchase oil to top off the Strategic Petroleum Reserve, crude prices rallied briefly. However, the announcement is unlikely to help increase crude prices further since the limited number of barrels the U.S. could purchase is small when compared to the dramatic reduction in global crude demand as a result of reduced economic activity due to COVID-19. Moving into this week, crude prices are likely to continue decreasing as the world grapples with how to contain the ongoing international public health crisis and associated economic challenges that could lead to a global recession. Until the price war ends and fears about COVID-19 subside, domestic crude prices are likely to remain low.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
AAA provides automotive, travel, and insurance services to 60 million members nationwide and more than 104,000 members in South Dakota. AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years. AAA is a non-stock, non-profit corporation working 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 (AAA.com/mobile) for iPhone, iPad and Android. For more information, visit www.AAA.com.