Market analysis firm believes demand for gas may drop 50% amid pandemic

While many Americans are struggling with the ongoing fallout of the coronavirus pandemic, a market analysis firm believes demand for gas may drop at least 50% leading to lower prices at the pump.

WashingtonExaminer reports demand for gas could drop at least 50%, according to a new market analysis.

“A sudden drop in miles traveled by car triggered by social isolation measures will have immediate ramifications for gasoline demand,” IHS Markit, a market analysis firm, said in its assessment released Thursday. “The magnitude of gasoline demand decline will be much greater than the impact of the 2008 recession — and could be further protracted depending on how effective social distancing measures are.”

The company added that “gasoline demand could fall by as much as … or more than 50%.”

The firm projected last week that U.S. GDP would lose about 13% in the second quarter, while unemployment would go up to 9% by December.

Gas prices have been plunging nationwide, with at least one Kentucky gas station selling gas below $1 a gallon.