Gas prices falling as omicron variant surges, stalling oil demand and prices

Average gasoline prices continue to fall as cases of the covid omicron variant surge, leading oil demand and prices to stall, an industry analyst said Monday.

“The decline in gas prices will likely continue until new covid cases slow down,” said Patrick De Haan, head of petroleum analysis for price-tracking service GasBuddy. “With gas prices very likely to continue declining this week in most states, we may see Christmas gas prices fall just under their all-time high on the holiday, which was $3.26 in 2013.”

Drivers in the Pittsburgh area, however, are not seeing as much of a drop in gas prices as those in the rest of the nation.

According to GasBuddy’s survey of 731 stations, the average price in the Pittsburgh area on Monday was $3.52 per gallon, down just a cent from a week ago. While 2.4 cents less than a month ago, that’s $1.09 more than a year ago.

Prices in the Pittsburgh area range from a low of $3.05 per gallon up to $3.93.

The national average has fallen 2.7 cents per gallon in the last week, to an average of $3.30. That’s 10.9 cents less than a month ago, but $1.10 higher than a year ago.

Beyond Christmas, with omicron cases likely to continue increasing, De Haan said he believes demand for gasoline will take a more noticeable hit after the holidays.

“There’s a rising likelihood that we won’t see gas prices rising for the rest of the year, with one caveat — gas prices in the Great Lakes states have plummeted by 30 to 50 cents in some areas, and stations in those areas may raise prices slightly should oil prices slow their decline,” he said. “Aside from those areas, declines at the pump are likely to continue as we close out 2021.”