Where are the cheapest places to buy gas in Centre County amid the COVID-19 pandemic?
While most people are staying home amid the growing coronavirus pandemic, gas prices have fallen sharply across the country, according to AAA. In Pennsylvania, they’ve fallen 22 cents in the last month down to $2.42 as of Thursday afternoon.
That drop is even more drastic in Centre County, where AAA says prices have fallen to an average of $2.24. State College has seen a drop from $2.63 to the Centre County average of $2.24 in the last month.
The 39-cent drop is 14 cents more than the national average decrease of 25 cents.
The steeper decrease in gas price can be attributed to one major factor, according to GasBuddy’s Head of Petroleum Analysis Patrick De Haan: Competition.
“There’s a lot of intricate behaviors that can change and this is a time where a disruption, like we’re seeing now, can cause areas to peform completely differently than they usually do,” De Haan told the Centre Daily Times. “All it takes is one gas station in one area to pass along part of the drop in prices much quicker than others and suddenly completely shifts the dynamic.”
De Haan breaks down and analyzes the data reported to GasBuddy to inform the site’s members and explains what is happening and what is about to happen when it comes to what consumers pay at the pump.
The drop in oil and gas prices has allowed gas stations to lower their prices drastically and still make plenty of money.
“We tend to see this when profit margins get wider,” he said. “Meaning they’re making more. Some will take a cut to get more traffic into their station. That’s all it takes.”
That means it just takes one gas station dropping its price to impact the rest of the area. Once one station lowers its prices drastically, others must follow suit in order to keep up and keep customers coming in. In an area like Centre County, where there are plenty of options, it’s more likely that a business will drop their prices to beat competition, but it can reasonably happen anywhere.
“These hotspots can be anywhere in the country,” De Haan said. “All it takes is one station to start playing this game, especially since most stations are doing fairly well. One station will up the game, cut their price, and take traffic away from other stations. Then other stations are forced to respond because they’re not selling as much gasoline.”
So where can you find the lowest gas prices in Centre County, and how much is it?
According to GasBuddy, if you’re paying with cash, Quick Fuel and Uni-Mart on North Atherton Street in State College are selling regular gas for $1.99 per gallon. The new Rutter’s on Benner Pike also had gas for $1.99 Thursday afternoon. Sam’s Club in State College is offering its members gas for $2.03 per gallon regardless of payment method. If you’re paying with a credit or debit card, Exxon on Willowbank Street in Bellefonte has regular gas for $2.06.
While those lower gas prices are a short-term benefit to the community, they could be a sign of an ominous future. AAA recently said the lower prices could lead to an economic recession.
And according to DeHaan, the prices will continue to fall.
“The biggest drops are yet to come,” he said.
This story was originally published March 19, 2020 at 5:10 PM.
