SAN ANTONIO (KTSA News) – Fewer people are traveling out of concerns about the novel coronavirus. Thousands of flights have been canceled and some major companies are telling their employees to work from home, if they can.
That has triggered a drop on global demand for crude oil, which is leading to lower prices at the pump.
Josh Zuber with AAA Texas says the average gasoline price in Texas dropped 6 cents from last week to settle at $2.10 for a gallon of regular unleaded. In San Antonio, the price at the pump dropped a nickel to settle at an average of $2.01.
Not only did we see a week-to-week drop, we’re paying less for gasoline than we were last year.
“We’re paying a dime less for a gallon of regular unleaded on average throughout Texas than we were last year, and in San Antonio, we’re paying 16 cents less than we were at this time last year,” Zuber told KTSA News.
However, there are several factors coming into play that could affect retail gasoline prices.
“OPEC is looking to cut oil supplies because of the coronavirus, but it looks like they’re waiting for conditional approval from Russia,” said Zuber.
It’s an attempt to prop up crude oil prices after getting slammed by the coronavirus.