Gas prices are finally starting to fall – and are expected to drop even further, according to a government report.

The U.S. Energy Information Administration says the average price for a gallon of gas will be down to $3.01 by next month – and average $2.88 in the new year.

The estimate is based on increased production and lower costs for barrels of oil.

Gas prices reached a high of $3.39 a gallon in November – the highest average in seven years.