Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Gas falls to $2.45 a gallon

Average gas prices have decreased for 46 days in a row, to a 19-month low, according to AAA.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Kenneth Musante, CNNMoney.com staff writer

If the U.S. enacts a second stimulus plan, what should be its top priority?
  • Extending unemployment benefits
  • Expanding food stamp program
  • Rebate checks to taxpayers
  • Help for small businesses

NEW YORK (CNNMoney.com) -- Gas prices lost nearly 3 cents to sell near $2.45 a gallon on average, according to a nationwide survey of filling station credit card swipes.

The average price of regular unleaded gasoline dropped 2.7 cents to $2.436 a gallon from $2.463 a day before, according to the survey released by motorist group AAA.

Gas last sold in the $2.50 range in mid-March 2007. The average price dropped below $3 a gallon on Sat., Oct. 18, for the first time in nearly nine months.

Gas prices have fallen for 46 straight days, shedding $1.41 since hurricanes battered the Gulf coast in September.

Unleaded is now down $1.67 or over 40% from a record high of $4.114 a gallon in mid-July, down in part due to the 50% drop in crude oil from its peak near $150 a barrel in mid July to its current trading price of around $63 a barrel. "[The price of] crude oil makes up about 70% of a gallon of gas," said Jason Toews, co-founder of GasBuddy, a network of web sites that list local gas prices state-by-state.

He also attributed the price cuts to the end of the summer driving season, when demand for gasoline drops off. "We will see gas prices continue to fall," said Toews. "By December it will be about $2.20," he added.

Americans are driving 5.6% fewer miles than last year, according data from the U.S. Department of Energy. A weekly trade survey from MasterCard showed motorists consumed 6.4% less gas in the past week compared to a year ago.

But, Torres said, gas prices will likely start rising again in late January 2009 as driving starts to pick up again and crude oil prices bottom out. "There's only so far that crude oil prices can go. A lot of major oil fields are not profitable below $60 a barrel for oil," he said, referencing the Alberta oil sands, a rich deposit of oil in Canada that is expensive for oil companies to tap.

State prices: Gas remained above $3 a gallon in Alaska ($3.497) and Hawaii ($3.381), according to AAA, but of the lower 48 states, California had the most expensive gas at an average of $2.834 a gallon, followed by New York at $2.812 and Nevada at $2.714.

Other fuels: The price of diesel fuel, which is used by most trucks and commercial vehicles, fell to a nationwide average of $3.265 a gallon, according to the survey. The most expensive state for diesel was Hawaii, at an average of $4.795 a gallon, while the cheapest was Oklahoma at an average of $2.956 .

Meanwhile the price of E85 ethanol, an 85% ethanol blend that can be used as a gasoline alternative in specially equipped "flex-fuel" vehicles, declined to a nationwide average of $2.274 a gallon from $2.284 the day before, according to the AAA survey.

The AAA figures are state-wide averages, and individual drivers may see lower fuel prices in different areas of each state. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
11 tasty treats to bring back from a business trip Nothing is as crowd-pleasing or pragmatic as edible souvenirs. We've found foodie gifts that are both delicious and distinguished in 11 popular business destinations. More
15 women who founded $1 billion startups Meet 15 women behind some of the world's hottest startups. More
Here are 27 ads Russian trolls bought on Facebook and Instagram The House Intelligence Committee on Wednesday released some of the ads a Russian troll farm purchased on Facebook and Instagram during and after the U.S. presidential election. More
Sponsors