Lincoln to Omaha: comparing gas prices
Posted By: Camila Orti
We’ve all wondered it- why are gas prices generally lower in Omaha compared to Lincoln?
There’s been little to complain about as gas prices have dropped more than 60 cents in the last month. The average price for regular gas in the Capital City is about $2.09 (as of Sunday afternoon), but many drivers are still wondering why gas might be cheaper outside of Lincoln.
In Omaha, motorists are paying an average of 5 cents per gallon less than drivers in Lincoln. In the past, the difference has been as much as 20 cents.
“I always notice it’s about a quarter, 25 cents per gallon cheaper or whatever, I’ve always kind of wondered why,” Travis Crozier said.
“$1.89 in York was the cheapest that we seen until we got into Omaha,” Mark Helm of Indianola, Neb. said.
Experts say it’s hard to compare different markets, but a couple things are helping to drive prices down in the Omaha area. We’re told one is volume- a greater population means more product is being sold, and retailers have more price flexibility. Another is area competition, meaning sheer number of retailers and their circumstances.
For example, Mark Whitehead of Whitehead Oil Co. believes Omaha stations have to compete with close-by neighbors in Iowa.
“Situated right next to Council Bluffs and Iowa, [there are] dramatically cheaper excise tax differences between the two states so that creates added pressure,” Whitehead said.
Historically speaking, gas prices in the Omaha area have, on average, been lower than those in Lincoln, but that’s not always the case.
“Several months ago we were cheaper than what Omaha was,” Whitehead said.
