Reality Check: Why Are Gas Prices So Low?

MINNEAPOLIS (WCCO) -- An AAA forecast says more travelers will hit the road this Thanksgiving than at any time since 2007.

A big reason is much lower gas prices.

Not only are Thanksgiving gas prices lower than last year, the price at the pump could stay low for months.

Energy experts say we can thank Saudi Arabia for cutting crude oil prices.

Worldwide demand is down, and U.S. oil production is up. Also, Minnesota switched to a less expensive winter blend fuel.

At Bobby and Steve's service station in Minneapolis, customers were surprised, and pleased about the price drop.

"They're getting pretty low. I'm liking them," said William Kucera of Minneapolis. "It's better than the $5 it was a couple years ago."

Prices are down from a record $4.27 in May of 2013 to well below $3 a gallon.

Like most American households, a typical Minnesota family buys about 1,200 gallons of gas per year.

The drop in gas prices from $3.28 one year ago to an average $2.81 today adds up to annual savings of about $564.

"I'm a student, and I work across town," said Eddie Stokes of New Hope. "I'm driving all the time anyway. So I love it when the prices are low."

Here are some of the sources we used for this Reality Check:

AAA Report of Current, Historical Minnesota Gas Prices
fuelgaugereport.aaa.com/states/minnesota/

GasBuddy Guage National Fuel Prices
gasbuddy.com/gb_retail_price_chart.aspx

US Energy Information Administration Survey of Gas Prices, Futures
eia.gov/petroleum/gasdiesel/