AUSTIN (Talk1370.com) -- Gas prices continue to reach historic levels in the wake of the coronavirus, with the average price for a gallon of regular unleaded across Texas falling to the cheapest level in more than a decade.
The average price for a gallon of regular unleaded fuel in Austin is $1.51 this week, down three cents from last week and $1.03 cheaper than a year ago.
Across the state, drivers are paying an average of $1.50 a gallon. That's also down three cents from last week and $1.12 less than a year ago. It's the cheapest since January 2009.
Nationwide, drivers are paying an average of $1.77, down two cents this week and $1.11 cheaper than this time last year.
Drivers in Midland are paying the most on average at $1.76 a gallon, while drivers in Sherman/Denison are paying the least at $1.17 per gallon.
Analysts say downward pressure on pump prices is likely to continue due to decreased demand and high gasoline stock supplies. However, some states, including Texas, could see minimal fluctuation at the pump in coming weeks if demand jumps as some businesses are given the green light to re-open.
Another factor market analysts will be watching is the impact of the crude oil production cut agreement from the Organization of the Petroleum Exporting Countries earlier this month. OPEC+ producers agreed to reduce output by about 9.7 million barrels per day in May and June 2020.
"COVID-19 has destroyed demand for gasoline for well over a month," said Daniel Armbruster with AAA Texas. "This has allowed oil prices to plummet to historical lows at times in April, and gas prices have slid to prices not seen in more than 11 years in the Lone Star State."
Refinery utilization increased slightly to just under 75% in the Gulf Coast region last week, according to the Energy Information Administration. Typically, April sees regional refinery rates in the 90% range. At the national level, refinery utilization sits at 70%. U.S. Gasoline demand rose to 5.9 million barrels per day last week. That’s up from the nearly 5.3 million barrels per day the week prior but still an extremely low rate compared to last April’s 9.45 million barrels per day average.
