October 25, 2014

Holiday treat for motorists: Gas prices fall below $3 in parts of state

Gas prices in Nebraska have been dropping for weeks and in some cases, they’ve fallen below $3 a gallon. Fuels analyst Harold Hommes says the winter season is a big reason for the price drops.

“We are down to eight-point-three million barrels a day in terms of use, consumption, and that is a reflection of winter. In winter season travel we’re not putting as many miles on as we do in the summer,” Hommes says.

Concerns over things happening on the international scene have seemed to calm down and are not appearing to have as much an impact on oil prices.

“We have a bit more stability now and we’re also producing a whole lot more crude than we used to,” Hommes explains. “Frankly, with that consumer-driven demand figure falling, we have ample stocks right now and that’s putting pressures on retailers and the wholesalers to get the product down.”

Gas in some areas of Nebraska has dropped below the three-dollar mark. The most recent survey of prices showed gas averaging $3.22 a gallon across the state, one cent below the national average.

Hommes expects some more movement downward in prices over the coming weeks.

“The trend right clearly puts downward pressure on fuels. So we may stabilize and be flat a little bit here through Christmas and New Years. But I look for a modest falling of prices, nothing spectacular, but I think January will bring us further pressure on retail gasoline prices.”