Gas prices are dropping across the US, just in time for the holidays

The price of gas is dropping across the country, but in Greenwood Village, Colorado, just outside of Denver — it’s a free-fall.  

Yes, gasoline there is just over under $2 per gallon. The newly opened QuikTrip dropped prices and forced some other local stations to follow.

“What’s not to like? Of course I like it. Shop on Arapahoe Road, it’s the same price all up and down the street,” said Peter Smith, a Denver motorist. 

While nobody is matching this price, the price of gas is falling in most of the country. Across the U.S. we’re seeing prices for gas we haven’t seen in a long while — from Florida to California. Texas is at about $2.74 per gallon, and nine other states are at less than $3.

“Well, gas prices have declined for eight straight weeks as we approach Thanksgiving. The national average has declined to its lowest level since February, falling to $3.31 a gallon,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

In Colorado, prices are down about 43 cents from a month ago. Drivers are certainly all for it, but why the price drop?

“Gasoline demand is falling — some of that is seasonal as temperatures get colder. But part of that maybe also as the economy is slowing … inflation is slowing. That’s something that will likely continue and not only that, but oil prices have fallen in the last three weeks,” said De Haan. 

Experts also say higher inventories of oil worldwide have helped keep crude prices in check. President Biden has also tapped the U.S. oil reserves. 

Looking down the road, the Federal Energy Information Administration forecasts consumption to decline by 1% next year, which might hold down pump prices as well.

Federal forecasters cite workers continuing to work from home, improving gas mileage and inflation for reducing per-capita gasoline demand.

But observers are also closely watching the war between Israel and Hamas to see how it might influence oil countries in the Middle East and the price you pay at the pump.