RIO GRANDE VALLEY, Texas – For the last few weeks gas prices have been at a historic low, now prices are slowly increasing.
“It got so bad prices went into the negative territory,” said economist Teo Sepulveda.
For drivers, it was a pleasant surprise at the pump. Now, prices are slowly creeping up. AAA reports the increase is because there is a higher demand for gas, with more people returning to work. If you head to the pump now, you might notice an increase in price.
“Actually, good news in a sense that there’s more economic activity and there’s an expectation that there will be enough demand for the existing oil which is abundant right now,” said Sepulveda
AAA adds the national average is at a $1.89. It is still cheaper than one year ago. Sepulveda is an economist and professor at South Texas College and tells us this is a sign the economy is recovering.
“It’s a good sign looking forward. Things are really bad right now but looking forward they look decent. More than likely investors are looking at a recovery during the summer,” he said.
Governor Abbott is easing stay-at-home orders and businesses across the Valley are reopening. Economists including Sepulveda are predicting a full recovery between this fall and early 2021. Sepulveda said prices will remain low for a while.
“10 months or so, probably they’re not going to go down to one-dollars and twenty cents like they were for a little while,” he said.
If you check AAA website, the cheapest gas average in Texas is in Amarillo and Tyler. Both have prices under a $1.50.