(KMOX) - Gas prices in some parts of the U.S. could drop as low as 99 cents per gallon because of the coronavirus pandemic, analysts say.
According to GasBuddy.com, gas prices are expected to continue to fall in the coming weeks, with the national average leveling out somewhere between $1.49 and $1.99 per gallon. Beyond that, it could even dip below a dollar, says GasBuddy analyst Patrick De Haan.
As of Wednesday afternoon, 17 states – including Missouri ($1.95) – had an average price per gallon under $2 and the U.S. average hit $2.24, down $.20 from a month ago. The current average price in Illinois is $2.16.
The plummeting prices are due to a kind of supply-and-demand perfect storm, with an increase in production in Saudi Arabia and Russia partnered with the dramatic decrease in demand caused by the spread of the coronavirus around the world.
"The root cause continues to be coronavirus related, since demand for oil slumped globally, inducing the current price war between Russia and Saudi Arabia as they both raise output, causing oil prices to crash through the floor," said Patrick DeHaan, head of petroleum analysis for GasBuddy.
But this trend could be reversed, GasBuddy says:
The last time fuel prices fell below $1.60 was in December 2008, when the country was experiencing a financial crisis. Six months earlier, the per-gallon price had peaked at $4.10.