Gas prices continue to fall, low may be yet to come

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Gas station pump

LEXINGTON, Ky. (WTVQ) – Kentucky drivers continue to enjoy the lowest gas prices in years and among the lowest in the country, according to the gas-buying app GasBuddy.

According to the service, Wisconsin, Kentucky, Michigan, Oklahoma, see lowest gas prices in roughly 6,000 days; Minnesota and Illinois selling gas for less than a cup of coffee.

 State  Average Gas Price  Lowest Gas Price Since  …In Days
 Wisconsin  $1.30/gal  3/3/2002  6,619
 Kentucky  $1.45/gal  11/14/2003  5,998
 Michigan  $1.45/gal  12/24/2003  5,958
 Oklahoma  $1.36/gal  12/31/2003  5,951
 Minnesota  $1.56/gal  1/31/2004  5,920
 Illinois  $1.77/gal  11/29/2008  4,156

Examining millions of fuel transactions from the company’s Pay with GasBuddy program, gas demand plummeted during the first three months of the year as Americans were ordered to stay home in light of COVID-19. The most recent data is even steeper, with transactions in April showing that gasoline demand has eroded by as much as 70 percent compared to late February and early March.

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In addition to some states seeing the lowest prices in a decade, GasBuddy counts more than a dozen states that now have low prices under $1 per gallon: Arkansas, Colorado, Iowa, Kansas, Kentucky, Michigan, Mississippi, Missouri, New York, Ohio, Oklahoma, Virginia and Wisconsin.

“To have thought at the beginning of the year we’d be in the place we are would truly have been impossible, new and multi-year records continue to be written when it comes to gasoline prices,” said Patrick De Haan, head of petroleum analysis for GasBuddy. “It’s staggering to know that in five of these six states we haven’t seen these gasoline prices in over 15 years, and for many of us, we watch from the living room window, adhering to the orders to stay at home. But there is strong potential that we will see gas prices this summer far lower than our previous expectations, and I’m hopeful by then we’re safely able to enjoy it.”

GasBuddy believes the chances are good that the national average may eventually drop under the 2008/2009 low as well. Today’s average of $1.79/gal would need to drop roughly 20 more cents per gallon to best the low prices from that period.

While the rest of states are currently near four year lows, there are signs too, that many more states will eventually test decade lows. “I fully expect that as many as half of the nation’s states will ultimately see prices fall to at least decade lows, with perhaps most of them ultimately falling to lows not seen since the early 2000’s,” De Haan said.