The average price of a gallon of gas has fallen below $2 in nearly a quarter of the country’s states, according to AAA.
The national average currently stands at $2.19 for a gallon of regular gas — the lowest it’s been since early December 2016. That’s down 13 cents from a week ago and 36 cents lower than a year ago.
Oklahoma is the cheapest, with a cost per gallon of regular going for $1.84. Hawaii and California are the two most expensive states for a gallon of regular, at $3.52 and $3.28 respectively.
“This is unprecedented,” Tom Kloza, head of energy analysis for the Oil Price Information Service, told CNN Business. He expects that the national average will soon drop between $1.99 per gallon with some states hitting $1 per gallon or less.
The national average price will probably decline further — perhaps to between $1.25 to $1.50 per gallon — in the next few months, he said.
Retail gas prices have been falling steadily for several weeks because of intensifying recession fears sparked by the coronavirus pandemic and a fight between Russia and Saudi Arabia over their roles as price stabilizers.
US oil prices were down a staggering 24% Wednesday, to $20.37 a barrel. That’s the lowest level since February 2002. The relentless selling is being driven by a crushing combination of excess supply and rapidly shrinking demand.
Two-thirds of all US states are seeing double-digit price drops this week, AAA said. Despite the lower prices, many drivers won’t even get to take advantage of the cheap prices because of travel restrictions and requirements to work from home.
–CNN Business’ Matt Egan contributed to this report.