Lower Gas Demand in 2020 Fuels Lowest Gas Prices in Four Years
WASHINGTON, D.C. Last year s prices at the pump hit their lowest annual average since 2016.
According to the U.S. Energy Information Administration (EIA), regular retail gasoline prices averaged $2.17 per gallon in the United States in 2020 44 cents per gallon, or 17 percent, lower than in 2019.
Gas prices started 2020 at more than $2.50 per gallon; however, the COVID-19 pandemic drove widespread reductions in passenger travel and gasoline demand, contributing to lower gasoline prices across the U.S., EIA explained.
By mid-March, as a national emergency was declared in response to the health crisis, prices averaged $2.38 per gallon. They continued to fall for several consecutive weeks before reaching $1.77 per gallon on April 27, the lowest average price since early 2016, according to the EIA s Gasoline and Diesel Fuel Update.