Gas pump

Nebraskans are facing sticker shock at the pumps as the state set all-time high record gas prices this week, according to AAA.

The statewide average of regular unleaded gas rose to $4.588 per gallon on Tuesday, AAA reported. Nebraska gas prices have surged from $3.982 per gallon just one month ago and $2.893 one year ago, according to their records.

Diesel hit its record-high price on May 8 when the state average reached $5.304 per gallon. It has dipped slightly since then, sitting at an average price of $5.213 per gallon in Nebraska. Diesel was $3.071 in the state one year ago.

According to AAA, the cost of a barrel of oil is nearing $120, nearly double from last August, as increased oil demand outpaces the tight global supply. Meanwhile, domestic gasoline demand rose last week in the wake of a robust Memorial Day weekend of travel. As a result, the national average for a gallon of gas surged 25 cents in one week to hit $4.86.

“People are still fueling up, despite these high prices,” said Andrew Gross, AAA spokesperson. “At some point, drivers may change their daily driving habits or lifestyle due to these high prices, but we are not there yet.” 

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 700,000 bbl to 219 million bbl last week. Meanwhile, gasoline demand grew from 8.8 million b/d to 8.98 million b/d as drivers fueled up for Memorial Day weekend travel. These supply and demand dynamics have contributed to rising pump prices. Coupled with volatile crude oil prices, pump prices will likely remain elevated as long as demand grows and supply remains tight, according to AAA.

Today’s national average for a gallon of gas is $4.86, which is 59 cents more than a month ago, and $1.81 more than a year ago.

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