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Gas industry

Gas Prices Plummet to Historic Lows

Strategic Insights

— 1 min read

In a welcomed relief to consumers, gas prices in Hampton Roads have continued to drop, with some stations offering regular unleaded gasoline for as low as 99 cents a gallon in March. This significant price drop is attributed to a combination of factors, including low crude oil prices, a decline in demand, and an increase in OPEC's production of crude oil. As a result, gas prices have been falling since September, with a more than 20-cent drop in the past six months, marking the longest and steepest price decline on record according to the American Automobile Association.

Key Takeaways:

  • Gas prices in Hampton Roads have dropped to historic lows, with some stations offering regular unleaded gasoline for as low as 99 cents a gallon.
  • The American Automobile Association reported that gas prices nationwide have been falling since September, with a more than 20-cent drop in the past six months.
  • Low crude oil prices, a decline in demand, and an increase in OPEC's production of crude oil are contributing factors to the price drop.
  • Crude oil prices have declined to around $15 per barrel recently, down from September 1997 prices near $20 per barrel.
  • The drop in crude prices has also resulted in a reduction in the price of home heating oil, with some dealers offering prices under $1 per gallon.
  • Jeffrey Miller, vice president of Miller Oil Co., expects the low gas prices to continue for "a little while longer" due to a potential OPEC output reduction.
  • Gary Gilmore, vice president of finance of Papco, notes that the markets' ability to make wild swings in value is a primary factor in the price drop.

Statistics:

  • Gas prices have declined more than 20 cents a gallon in the past six months.
  • Crude oil prices have declined to around $15 per barrel, down from September 1997 prices near $20 per barrel.
  • The current gas prices are lower than any prices on record, according to the American Automobile Association.
  • The price drop has resulted in a reduction in the price of home heating oil, with some dealers offering prices under $1 per gallon.
  • OPEC's increase in production of crude oil has contributed to the price drop, despite a potential reduction in output.

Sources:

  • The American Automobile Association (AAA)
  • Jeffrey Miller, vice president of Miller Oil Co.
  • Gary Gilmore, vice president of finance of Papco
  • The Virginian-Pilot (newspaper)

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