Gas Prices Keep Plunging, And May Harm Industry
By: Brady Fisher
With gas prices continuing to fall all around the United States, some industry analysts believe that gas prices could start to fall below the one-dollar mark.
According to an article from CNBC, the gasoline industry is in trouble with the continual fall of gas prices at the pump. Refineries are already cutting back 20 percent, but analysts now believe that they will eventually have to cut back over 30 percent. For the refineries that are not able to make such cuts, they will ultimately have to close their doors for good.
These hard times for the gasoline industry come at a time when many Americans are staying off the road. According to data from the government, Americans used just 5.1 million barrels a day of gasoline last week, this is compared to the 9.8 million barrels a day that Americans were going through at this time last year.
With the national average for gas prices currently at $1.90 a gallon, analysts believe we are headed for a national average as low as $1.25 per gallon, with many areas that may see gas prices drop below the one-dollar mark. Refineries are hoping that once lockdowns are over, the industry may recover.