Iowa Gas Prices Lower Than National Average - ABC5 News Des Moines, IA

Iowa Gas Prices Lower Than National Average

By Alex Schuman

aschuman@myabc5.com

@alexschuman

Driving around town now is a lot cheaper than it was even a month ago.  The price per gallon of gas has gone down across central Iowa, and in some places has dropped 10 cents.  

"I was like woo-hoo cheap gas!" said Heather Berry, an Ankeny resident.

"You're always looking for a bargain," said Glenn Large, also from Ankeny.  "When gas gets below three dollars it's kinda like a magnet.  It draws you."

Gas at one station in Altoona is now 2.99, which is giving people's wallets a nice break during the holidays.

"Christmas is coming and any way to save is a good thing," said Berry.

But these prices are not a Christmas miracle.  They are actually the market doing what it does almost every year.

"We're into the winter season and the winter blend of gas is cheaper to produce," said Tom Root, a Drake University finance professor.

According to Root, lower demand and a surplus of refined oil is pushing down the price.

Iowa's prices are going down faster than the national average because we didn't have any big disruptions that affected supply like Hurricane Sandy on the East coast, or an oil refinery fire in the West. 

"I have friends who pay upwards of four dollars so now I can rub it in," said Large.

But Root does not believe the country catching will translate into Iowa's prices going even lower.

"Around three dollar gas is probably where I would say we'll level out," he said.