Drivers taking the road trip to see family this Thanksgiving and Christmas should see welcome signs throughout the state showing gas prices falling below $2 a gallon. And they are likely to head even lower.

 

Most stations in Becker, Big Lake and Clear Lake show prices at $1.99 a gallon while St. Cloud was still at around $2.05 last Saturday.

 

The BP in Clear Lake was at $1.99. Clearwater’s Holiday stores were at $1.97 a gallon. The SA, Shell and Holiday stations in Becker were all at $1.99 a gallon as of Wednesday of this week. The average Minnesota price is right at $2 while the lowest is $1.79 in Montrose (two stations) and Waverly.

 

The average gasoline price has dropped 17 cents in the Twin Cities over the past week.

 

“There is a lot more room for prices to fall,” said GasBuddy petroleum analyst Patrick DeHaan. “We are really in only the third inning of the decrease.” 

 

Unless a significant disruption happens in the commodities market, DeHaan said gasoline prices across Minnesota and the nation should be under $2 by Thanksgiving Day and drop 15 cents to 30 cents more by Christmas.

 

“The gas prices are great,” said Chuck Stanger, retired BHS director of buildings and grounds. “It’s nice not having to worry about spending $80 or more to fill it up.”

 

Stanger drives a massive four-door pickup which he now utilizes for his hunting trips to western Minnesota in the fall.

 

“The lower gas prices has helped this fall for hunting and vacation-wise, if the prices stay low, we just might decide to drive to Arizona this winter for a vacation rather than fly,” he said.

 

Some wholesale clubs and dealers will most likely be trying to outdo those prices so they may eventually have the lowest prices in a few weeks — possibly under $1.70 a gallon.

 

AAA reports the reason behind the price drop is that cheaper crude oil is driving down prices.

 

“It is a great situation for drivers,” added Michael Green of the AAA Fuel Gauge Report, which also tracks gasoline prices. “Prices are dropping very quickly right now.”

 

In July, oversupply brought down the cost of crude oil for the second year in a row.

 

Also, some refinery issues —that slowed production — have been worked out.

 

Minnesota gas prices last dipped below $2 per gallon last January. DeHaan said this is the first time since 2008 that gas prices are around $2 near Thanksgiving.

 

“We haven’t necessarily been selling more gas, but we sure are seeing a lot more happy customers,” said Deli Plus employee Leif Swanson.

 

Motorists typically drive less in the fall and winter, reducing fuel demand, which pushes down the price. This post-Labor Day decline can last until late winter. Then the trend reverses in the spring, and gas prices typically begin to climb to summer highs.

 

Minnesota’s average gasoline price hit a high of $4.27 per gallon in May 2013, and mostly stayed above $3 until November 2014, when it fell below $3 and has stayed there ever since, according to AAA price data, which is drawn from credit card transactions at gas stations.

 

Last November, benchmark domestic crude oil traded at $74 per barrel. Recently, domestic crude has traded at just over $40 per barrel, a drop of more than 40 percent. North Dakota crude was priced at $30 per barrel this week at a Twin Cities refinery.

 

“The difference this year is the drop in the crude oil price,” said DeHaan. “It is that difference that opens the door for us to have sub-$2 gasoline.”