The world pandemic and a gas war between Saudi Arabia and Russia have caused oil prices to take a nose dive in recent weeks. U.S. consumers are smiling at seeing lower prices at the gas pump.
The COVID-19 outbreak is causing consumers to drive less due to stay-at-home orders and the economic activity ground to a halt in China, the second leading consumer of oil.
AAA reported the average national pump price for gas has dropped to under $2 a gallon. In Alabama, a gallon of gas cost $1.75 while the national average is $1.97.
GasBuddy has a travel and navigational app that helps members save money on gas and predicts the average cost of gas could drop to $1.49 before the end of April, the lowest since 2004.
They also reported the best prices in the state are in Salina where Xpress Fuel is charging $1.45 per gallon of regular gas. Love’s Travel Stop and the Phillips 66 in Salina are charging $1.58 for a gallon of regular gasoline.
The prices in Cache Valley today are at about $2.29 a gallon.
Kyle Balls, the owner of Smooth Movers in Smithfield, said he’s happy with the price drop.
“We move people and things locally and long distance and spend anywhere from $200-$500 a week,” he said. “We are happy with the lower prices of fuel.”
Some reports say the oil price war might be of concern to the U.S. energy industry and if it will be able to keep up with slashed global oil prices.
When Saudi Arabia cut its oil prices six years ago, it led to layoffs in the U.S. energy industry.