COVID-19 is not the only reason gas prices have recently decreased throughout the nation -- and Clarkdale.
More people are staying at home and buying less gas with the recent social distancing. However, the price of crude oil has dropped to levels not seen since the early 2000s and gas prices are lowering as a result, according to Don Redman, AAA public affairs specialist for Mississippi.
Redman said crude oil is the biggest driver of the less expensive gas prices. He said it counts for nearly 60 percent of the price at the pump. He added the Energy Information Administration reported consumer demand for gas is at a nearly 30-year low and it’s likely to push lower as Americans are urged to stay at home at least until the beginning of May.
“This week, market analysts are watching crude oil prices, which started to increase at the end of last week,” said Redman on Monday. “However, given the low demand readings, increases in crude aren’t likely to have an impact on gas prices in the near-term.”
As of Tuesday, the average price for regular gas in Mississippi is $1.633 per gallon, according to the AAA website. The average one week ago was $1.718 per gallon. The average was $2.094 per gallon a month ago and $2.445 a year ago.
Coahoma County’s average is a little above the state at $1.647 per gallon.
Redman said the United States refinery realization rate is down to 82 percent, which is a low since September 2017. He said the Organization of the Petroleum Exporting Countries (OPEC) and its partners, including Russia, are scheduled to hold an emergency meeting Thursday to discuss potential crude production cuts amid the global oversupply caused by COVID-19.
One gas station feeling the effects of the recent change in prices is Shady Nook – the local Shell Station on Highway 61 in Lyon.
Shady Nook manager Ricky Moody said his gas prices were some of the quickest to drop, but he did not have a reason.
“I know what I was paying for it (gas),” he said. “Those people downtown were 40 cents higher than I was. Again, I don’t know how they set their prices. It’s none of our business.”
Moody said Shady Nook saw an increase in gas business when the prices were lower than other places.
Now, with people staying at home due to the COVID-19, most gas stations are not getting as much business.
“When I dropped my prices down and we were cheaper than anybody else, sure, we were busier at the beginning of the virus,” Moody said. “When everyone was supposed to be staying at home, people were flocking out here buying fuel because we were 40 cents cheaper than they were. That’s not the case now that everybody came down to our price.”
Moody said one difference between Shady Nook and other gas stations is it is locally owned.
“As far as prices go, the big people, when prices are low like this, they can buy a bulk and store it, but we can’t,” he said. “That’s why, usually, our prices are higher than everyone else’s because we’re going with day-by-day basis.”
Moody said, even when Shady Nook’s prices are higher than others, some customers still buy its gas because of the convenient location on Highway 61.
He said Shady Nook has sold more diesel gas than usual recently because it is 60 cents cheaper than other places. He noted many truck drivers, which pass through on Highway 61, use diesel has.
“These people don’t go uptown,” Moody said. “There is no truck stop between here and Cleveland.
“Most of the people driving up and down 61, they’re not going to drive uptown. They’re going to stop up here.”
The average diesel price in Mississippi is $2.279 per gallon as of Tuesday, according to the AAA website. It was $2.791 per gallon a year ago.
What takes place with the coronavirus could help shape gas prices in the coming months.
“Will there be a market drop in June and July?” Redman said. “Right now, we don’t know. A lot of it is going to depend on the virus.”
