The price of gas fell another 10 cents Tuesday afternoon on the heels of Sunday’s dramatic plunge in the price of crude oil.
Crude oil prices fell 25 percent late Sunday as demand dried up leaving a glut of crude supplies in the wake of the travel restrictions and reduced airline schedules caused by the coronavirus outbreak.
Another factor cited is the lack of agreement on cutting production between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries.
Here on Guam, Mobil, as usual, led the way down dropping its price for a gallon of regular unleaded fuel by 10 cent to $3.85.
Shell followed suit overnight. However as of Wednesday morning at 5 AM 76 was still holding back at $3.95 a gallon.
This is the fifth change in the price of gasoline in 2020 and the fourth decrease in price.
There has only been one price increase this year, on Jan. 8, when the cost per gallon briefly shot up 10 cents to $4.25 in the wake of Iran’s missile attack on U.S. military installations in Iraq.
The American Automobile Association credits the price decline to “healthy stock levels and cheaper crude prices.”
The price per gallon at the start of the year on Guam was $4.15.
In the states, the average price per gallon as of Tuesday was $2.36, according to the American Automobile Association.
Triple-A, however, expects the downward trend in prices to continues amid concerns about the coronavirus.
2020 Price Changes: