Dropping Petrol Prices- $2 per 4 Liters

Wednesday 1st of April 2020

Dropping Petrol Prices- $2 per 4 Liters

According to both the American Automobile Association (AAA) and the website GasBuddy, which track gas prices, the average gas price has dropped below $2 a gallon. This takes place for the first time in four years.

The cost of petrol is connected with the cost of oil, which has fallen by about 65% since the beginning of the year. Demand drastically fell due to coronavirus and travel restrictions. A barrel of crude that costed $65 when we entered 2020 had dropped to $20.

Oil prices drops to their lowest level in nearly 20 years. A recent poll from The Washington Post and ABC News found that roughly 9 in 10 Americans are practicing social distancing and staying at home, thereby significantly cutting back on demand for gas. So the drop in petrol prices would have been a good news for travelers, if they were actually travelling.

Lower fuel prices are also not likely to be an advantage to the economy, Bank of America said. As people stay home, the money saved due to price reductions will not flow back to the economy as usual.