AAA, a U.S. motorist association, put the national average price for a gallon of regular unleaded gasoline at $3.25 on Sunday, a drop from $3.52 a week ago, but still an increase from $2.76 a year ago.
“The nationwide price of gas dropped by 23-cents a gallon from Sunday to Friday [of last week] and by week’s end, three states had reached a statewide average below $3.00 a gallon (Oklahoma at $2.92, Kansas at $2.97, Missouri at $2.99),” stated AAA in a Sunday press release.
Soaring prices and an ailing economy had led to an overall decrease in gasoline consumption in the United States this year.
The Secretary of Transportation released a report on September 30 indicating that Americans had driven 3.6 percent less, or 9.6 billion miles fewer, in July 2008 than July 2007. From November 2007 to July 2008, 62.6 billion fewer miles were driven than in the same nine-month period a year before.
And Americans are driving less and less every month. This decrease in demand along with the recent global economic crisis have caused the price of crude oil (the main factor in gasoline prices) to plummet.
The price of crude oil closed on Friday at $77.70 per barrel, while just a week ago the price was $93.88. This past summer, the oil peaked at nearly $150 per barrel.
Additionally, the U.S. dollar strengthened in the international currency exchange markets, which have also aided to the price breaks at the pump. Most oil used in the U.S. is imported from foreign countries, thus the value of the U.S. dollar abroad impacts the price that domestic importers pay.
“AAA expects gas prices to fall faster and further in the days ahead,” said Catherine L. Rossi, Manager, Public and Government Affairs, AAA Mid-Atlantic. “As the price of crude oil tumbles—so should prices at the pump. AAA expects the nationwide price of gas will probably average $3.00 a gallon before Thanksgiving. Motorists should be pleased to finally see prices dropping at the pump, when the overall financial picture is so unpredictable.”
