Gas prices have fallen well below $2 a gallon as Saudi Arabia ramps up production after failing to work out production cuts with Russia.
The new Costco gas station near Christiana Mall, posted a gas price for regular of $1.76 a gallon on Monday, according to the GasBuddy website. The price was matched rival by BJ’s Wholesale Club.
Other areas of the state have also seen gas prices at the $2 mark.
Monday average gas prices from Wilmington-based AAA Mid-Atlantic were as follows
- Pennsylvania gas average at $2.35 today, down a penny overnight and down 11 cents in the last week.
- New Jersey gas average at $2.28 today, down a penny overnight and down 8 months in the last week.
- Delaware gas average at $2.04 today, down 3 cents overnight and down 10 cents in the last week.
- Maryland gas average at $2.13 today, down 2 cents overnight and down 10 cents in the last week.
- Philadelphia (5-county) area gas average at $2.41 today, down a penny overnight and down 8 cents in the last week.
- South Jersey gas average at $2.19 today, down a penny overnight and down 9 cents in the last week.
- National gas average at $2.12 today, down 2 cents overnight and down 13 cents in the last week.
- “The average price of gas across Delaware is as low as it has been since January of 2019,” says Ken Grant, public and government affairs manager for AAA Mid-Atlantic. “And, the impact of COVID-19 and the oil price wars may significantly diminish the typical run-up in gas prices we see through the spring.”
Thanks to the actions of the Saudis and the effects of the coronavirus, crude oil prices have plummeted. Saudi Arabia opened the crude oil valve after a dispute with Russia over production cuts.
Oil prices gained ground over the past week, but remained at about $23 a barrel after falling to about $20. The price of crude had been in the $50 range.