It’s a Christmas miracle: Gas prices fell 40 cents this month and will keep dropping

November 29, 2018

Two-buck gas could be coming to a gas station near you.

Gas prices have dropped 40 cents this month, and the downward trend is expected to continue through the holidays.

Pump prices peaked this year in Nebraska at $2.87 on June 2. Wednesday, the average was $2.37 in Nebraska and $2.29 in Iowa for regular unleaded fuel.

The lowest pump price in Nebraska as of Wednesday morning could be found at the Cubby’s in Yutan, just west of Omaha. At $1.99, manager Marie Pelo said she’s feeling the strain as prices fall.

“It’s terrible,” she said. “I’m not making any money. This affects my bonus.”

But for motorists, it’s great news. On Thanksgiving weekend, the average U.S. pump price was its highest for the holiday in four years, according to Bloomberg.

But as of Wednesday, pump prices were 15 cents per gallon lower in Nebraska and 20 cents per gallon lower in Iowa than on the same day last year.

Crude oil supply has risen for 10 consecutive weeks, according to the latest government reports, and production has risen by more than 56 million barrels since mid-September. Prices per barrel have fallen by nearly one-third since then.

“With the increase in U.S. production and growing crude oil supplies, pump prices will remain extremely favorable for motorists for the upcoming holidays,” said Rose White, public affairs director for AAA Nebraska.

Update hourly