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AAA: Gasoline, diesel prices drop
Travel group's report says regular unleaded fell by less than a penny, diesel down by four cents.
November 1, 2005: 7:50 AM EST
Playing oil stocks
Earnings could fall dramatically if rising prices lead to reduced demand -- here's a way to cope. (Full story)

NEW YORK (CNN/Money) - Regular unleaded gasoline prices slowed in their downward pace Tuesday, dropping by less than a penny, while diesel prices fell four cents, according to travel group AAA's daily survey.

The nationwide average price for regular unleaded fell to $2.483 a gallon from $2.492 Monday, according to AAA. The price is down nearly 19 percent from the record high of $3.057 reached on Labor Day, following Hurricane Katrina.

Gasoline prices, which have recently posted a decline of one to two cents per day, are down from $2.922 a month ago, but up from $2.030 a year ago, AAA says, a year-over-year increase of 23 percent.

Retail diesel prices, which had not experienced the same recent declines as gasoline, sank four cents to $3.051 a gallon from $3.091 Monday. Diesel prices are down nearly 6 percent from a record $3.239 set Oct. 24, but they're up almost 36 percent from $2.249 a year ago.

Gasoline prices have steadily fallen during the past two weeks on signs that the soaring expense of energy is finally starting to curb consumption within the U.S., the world's biggest user of fuel. In its weekly inventory report, the U.S. government reported last Wednesday that demand for gasoline was 2 percent lower last week despite the recent decline in pump prices.

Even though consumers may be putting the brakes on consumption, many analysts expect prices to rebound as winter approaches.

On a state-by-state basis, AAA says Hawaiians pay the most for regular unleaded at $2.997 a gallon. Oklahoma has the lowest prices, at $2.132 a gallon.

The average price for a gallon of mid-grade gasoline fell less than a penny Tuesday to $2.638, according to AAA. Premium unleaded also declined less than one cent to $2.733 a gallon.

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Where is all that oil money going? Click here.

Click here for CNN/Money's special report 'Oil Crunch 2005.'  Top of page

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