Oil prices are lower, why aren’t gas prices?

By: Ian Hest

It's frustrating to go to the pump and see the price of gas not going down as much as we'd like it to. When will we see relief? High gas prices have become a reminder of the struggling economy the last several years, making some people frustrated if it will ever go down.

Gas prices continue to stay high. Around Lincoln Wednesday, the average price per gallon was $3.59, two cents higher than the national average. The price of crude oil Wednesday, is the same as it was in November of last year, yet people are paying almost a dollar more per gallon at the pump than they did last November.

To folks like Cari Campbell, the current economic climate plays a major role. “I think it's just the economy and what happens, happens but as long as it benefits us in the long run, I think it's a good thing,” Campbell said.

Professor Eric Thompson, the Director of the Bureau of Business Research at the University of Nebraska, says prices will lower…but people need to be patient.

“Over the long run that competitive pressure between businesses keeps the prices of most items about as low as they can be. Unfortunately, in a temporary situation such as when the price of oil falls, those competitive pressure may not work instantly and so they'll be lowering their prices over time, but they may not lower them immediately,” Thompson said.

So as we head into fall, gas prices should drop. And Campbell says, that's just fine with her. “So long as it keeps going down, I think that's ok. I'm right up the road. This is my neighborhood shop. Everybody's pinching pennies right now so anything helps,” Campbell said.

Don't count on those lower prices just yet. We saw one station go up 10 cents while we were there Wednesday.