Gas Tax To Decrease In January

LINCOLN – As New Year’s Day approaches, the Auto Club Group is forecasting a decrease in gas tax this month.

According to a release from AAA, Nebraska’s gas tax rate will be 28.7 cents per gallon beginning on January 1. This will mark a decrease of 4.5 cents per gallon which is good news for Nebraska motorists, who saw total gas prices spike ahead of the holidays.

The December average price per gallon was $2.21 in Nebraska, up from $2.04 last month. Despite this increase, gas prices remain 23 cents cheaper than last year at this time.

Pump prices across the country were getting more expensive as the end of 2020 drew near. Since Monday, December 21 the national gas price average has jumped six cents to $2.22. While not the most expensive price we’ve seen this year, it is the highest national average since mid-September.

Two factors have contributed to driving up the price at the pump: rising crude oil prices and tightening supply. The domestic price of crude (WTI) has been steadily rising since November, with prices topping $49/bbl. Prices have not been this expensive since February, before stay-at-home guidance was introduced across the country. Prices began to rise last month alongside vaccination news and have only increased with it becoming available.