Gasoline's average price falls below $2 a gallon

Reuters



The average retail price for a gallon of gasoline in the United States fell below $2 a gallon on Tuesday, the American Automobile Association said.

Nationwide, the average price for gasoline stands at $1.997 per gallon, having dropped by 45 cents in the past month as demand plummeted amid the coronavirus pandemic and a price war between Saudi Arabia and Russia.

Global fuel demand has plunged as governments enact policies to slow the spread of the virus, which has killed more than 37,000 people worldwide. Numerous U.S. states have issued orders telling residents to stay home as the outbreak worsens in the nation.

The U.S. consumes about 9 million barrels of gasoline per day, the most worldwide. However, prices are expected to keep falling, as fuel demand has dropped by about 41% this week, said Patrick DeHaan, senior petroleum analyst at GasBuddy.com, which tracks retail demand.

"I think we're headed for somewhere around $1.49/gallon nationally," he said.