Coronavirus Helps Drive Gas Prices Down
LOS ANGELES (CBS)- Coronavirus is having a huge impact on the economy, but it's also making it cheaper to fill up your tank.
Drivers are getting a pleasant surprise at the gas pump, cheaper prices. "Every little bit is received positively and it helps," says driver Candido Rodriguez. "It will be interesting to see when people are staying home and not driving, really how prices go down," says driver Kiki Heinzer.
Prices have dropped about 19 cents in just the past month, according to AAA. The cost of oil is a big reason why. It's been falling ever since Saudi Arabia decided to increase supply. "Right now we're seeing crude oil trend about $30 a barrel. When you compare that to last year when we were seeing closer to $70 a barrel, you can certainly see how that difference makes a big impact at the pump," says Jeanette Casselano from AAA. The biggest price drop has been in Ohio, where prices at the pump dropped 27 cents.
Casselano says drivers in several southern states are currently paying less than $2 a gallon for gas, and more states will be joining them. "With a lot of people working from home right now, that's going to have an impact on gasoline demand. We're not going to see as many people on the roads. We could see gas prices drop by another 25 cents in the coming weeks. And that means for states in the South, that are already below $2 a gallon, they can see prices hit $1.75," Casselano says.
That's good news for people who are struggling financially because of the coronavirus.
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