ASSOCIATIONINSIGHT
Portable Sanitation Association International News
BIWEEKLY EDITION MARCH 31, 2021
Page 11
Drivers and business owners saw some of the lowest gas prices in decades as a result. In late April and early May
2020, the overall average fuel price bottomed out at $2.02 per gallon, and diesel was just $2.38 per gallon on
average. In some areas, prices dipped well below $2.00.
It took a few weeks for this excess supply to work its way through the system. Meanwhile, producers began to
reduce the amount of oil they were putting on the market in order to boost their revenue per barrel of crude. By
the end of April 2020, the price of this commodity was on the rise again.
Assessing the Current Fuel Situation
As of March 30, 2021, crude oil prices are back to
approximately the same levels as they were in the pre-
pandemic market. This means, of course, the prices we pay
at the pump are reflecting these increases. Although the
price per gallon is a long way from the record-high rates for
fuel in 2008, the cost per gallon does seem to be headed for
territory last seen in 2018 as shown on these charts from the
American Automobile Association (AAA).
"The biggest factor driving gas prices is crude oil prices.
They've been increasing for weeks and despite low demand,
pump prices are rising," said Jeanette Casselano McGee, a
spokesperson for AAA, as reported by NBC News.
"The market is very optimistic about vaccinations and what that could mean for the return of travel, which
translates to higher crude…. Crude, not demand, has been the main factor driving gas price increases this year,"
she reiterated.
McGhee made these remarks in mid-February. As more and more people are becoming vaccinated and states are
loosening COVID restrictions, demand is ramping up as well. Demand is now factoring in today's fuel prices.
Reasons Fuel Prices Rise
Experts always predicted fuel prices would rally with the rest of the economy as we came out of the COVID-19
slump. Increased demand is an important reason underlying the upward trend in prices shown on these charts, but
it is not the only reason.
Fuel Prices: What to Expect Ahead…continued from page 2
Continued on page 12
