Gas prices drop due to COVID-19

News

HARLINGEN, Texas – Filling up your tank has gotten a lot easier on the wallet.

Prices have dropped below two dollars here in Texas.

That’s the lowest in the last four years.

It’s all due to COVID-19 impact on oil prices.

“Liquidating their inventories instead of producing more oil that’s kind of what happened in February 20th. That’s when you start to see drops in stock prices and oil prices,” said Teo Sepulveda, STC Economics professor.

 He’s an economist and professor at South Texas College and tells CBS 4 that the low prices in gas, oil, and stock are normally a precursor to a recession.

“We have an economic shock because the economy has to slow down because of the physical distancing that we have to practice so it’s pretty predictable,” he said.

There’s a silver lining, Sepulveda said people shouldn’t be worried.

There are already signs the economy will bounce back and people right now should take advantage of the cheap prices while they’re here.

“There’s pretty much nothing we can do until we’re able to go back to our normal activity,” he said. While demand is down, COVID-19 isn’t impacting the US gas supply.

According to AAA, American has winter-blend gas that’s still available.

However, economist predict that cheap gas prices will be here for the next few months.

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