what has caused the drop in the price of gasoline now April 4, 2020?
- Obi Wan KnievelLv 72 months ago
That would be the sudden and serious drop in demand.
People are staying home as much as possible, which means not driving to and from work every day. And we're talking about a whole lot of people. The price of crude oil has also fallen, but that's not a major factor. Oil prices have dropped before, and it takes weeks if not months to see any difference at the pumps.
Sometimes the price at the pumps isn't affected at all when the price of crude drops. Which is funny, because when the price of crude goes up you'll see the increase at the pumps that same day.
But that's a whole other topic. The reason gasoline prices have tanked is because nobody is buying the stuff compared to a few weeks ago.
- River EuphratesLv 72 months ago
On March 8 2020, Saudi Arabia announced unexpected price discounts of $6 to $8 per barrel to customers in Europe, Asia, and the United States. The announcement triggered a free fall in oil prices and other consequences that day, with crude falling by 30%, the largest drop since the Gulf War.
- Anonymous2 months ago
Russia is competing against Saudis on fuel output & undercutting each other. It is a price war between the suppliers.(for once)so there is a glut of fuel on the markets.
- Christin KLv 72 months ago
Transportation--on road and air--has fallen dramatically. No need for gas when you don't go anywhere--so stockpiles are growing and producers are making more than is getting used. The country is skidding to a halt.
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- curtisports2Lv 72 months ago
Have you seen the crash in crude oil price? In addition to decreased demand for gas because people aren't driving, the Russians and Saudis are engaged in a price war (in an attempt, in part, to damage the US shale oil industry).
You will notice that diesel price has not come down much from the pre-COVID level. Stuff still needs to be moved by truck and train.
- Anonymous2 months ago
Drop in oil prices combined with a lot less driving.
- JetDocLv 72 months ago
Supply and demand! With about 90% of Americans being stuck at home because of the coronavirus, they're not out driving their cars and burning up gasoline, which means the supply is high and demand is low. Prices will go back up fast enough when the states lift the bans on travel and shopping.
- artherLv 52 months ago
supply and demand not as much is being brought. See what a dud world we live in. When did greedy corporate scum get control of the world we better get it back before they sell it to china
- hotstuffktrLv 62 months ago
Uh, oil war between OPEC and Russia??
- megalomaniacLv 72 months ago
Russia and Saudi Arabia were both flooding the market in a trade war and then the market fell apart completely due to lack of demand because people are travelling so much less because of the coronavirus outbreak.