Reporting Holly Wagner
MINNEAPOLIS (WCCO) — Good news for drivers — gas prices have shifted into reverse.
According to AAA, the national average is now $3.39 a gallon and the price has gone down every day for a month.
In downtown Minneapolis, the price of gas is $3.49 a gallon, which is higher than the national average but about 30 cents cheaper than what it was a month ago.
According to AAA, the average price for regular unleaded in Minnesota is $3.46 a gallon, but a few stations outside of the Twin Cities were selling gas for $3.27 a gallon.
Nationally, gas prices have taken a dip.
Last week, the price of a barrel hit a year low at $75 a barrel. In some states like Iowa, gas is approaching $3 a gallon.
Joel Berlowe of Uptown says prices aren’t where he’d like to see them but they’re better.
“Now it’s nice because I have a little extra spending money. But it hasn’t been enough of a difference for me to notice that much,” he said. “If it goes lower than $3 a gallon, then it may be a different story.”
Akshay Rao, professor of marketing for the University of Minnesota, said the drop in prices is a result of a few things.
The state of the economy – GDP is down, unemployment remains high and consumer confidence is down, which all lessen the demand.
As the demand goes down, so does the price of gas.
So while we’re enjoying the break, Rao said it’s a sign the economy continues to struggle, which is not good.