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Falling demand in fuel results in substantial savings at the pump

BURNSVILLE, MN (April 11, 2020) Since Monday, the national average for a gallon of regular gasoline has decreased a nickel a gallon to $1.87, reports AAA. Low crude prices due to COVID-19 and lower demand for gas, as Americans continue to social distance, have pushed pump prices lower.

In its latest weekly report, the Energy Information Administration reported that gas demand plunged to 5.1 million barrels per day from the previous week's rate of 6.7 million b/d. With gasoline demand across the country running near a 30-year low, refineries are reducing production in hopes of balancing supply.

"With Americans expected to remain at home in the weeks ahead, demand for gas is likely to continue declining alongside pump prices," reports Mark Peterson, spokesperson for AAA-The Auto Club Group. "In some states the drop in prices has been dramatic with motorists saving a dollar or more per gallon compared to retail pump prices of a year ago."

Fuel price averages for unleaded fuel in Minnesota and other Midwest states:

4/11/2020 4/11/2019 Year-to-Year Variance

Nebraska $1.76 $2.69 93 cents

South Dakota $1.77 $2.71 94 cents

Iowa $1.58 $2.66 $1.08

Kansas $1.63 $2.58 95 cents

Colorado $1.84 $2.61 77 cents

Minnesota $1.67 $2.67 $1.00

Missouri $1.59 $2.55 96 cents

The lowest prices in the nation can be found in Wisconsin where the state average is currently $1.34 a gallon, reports AAA.

Crude prices have remained volatile following this week's announcement of a tentative crude production reduction agreement between the Organization of the Petroleum Exporting Countries (OPEC) and other major crude oil producers, including Russia. Final details are still pending but the collective effort is expected to cut global crude production by 10 million b/d for May and June 2020.

For more information on gas prices, visit AAA.com/gas.