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Gas falls to half of record high

Prices at the pump in national survey continue to decline as 21 states' averages fall below $2 a gallon.

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By Julianne Pepitone, CNNMoney.com contributing writer

gas_pump_3.ce.03.jpg
Which should be the Obama administration's priority?
  • Stimulating the economy
  • Reducing the budget deficit

NEW YORK (CNNMoney.com) -- Gasoline prices dropped to below half of the record high Wednesday, declining for the 63rd straight day in a national survey.

The national average fell 2.1 cents to $2.047 per gallon of regular gasoline, according to the daily survey conducted for the American Automobile Association, a motorist group.

The price of gas is less than half the record high of $4.114 per gallon reached in mid-July. Prices were down more than $1.04 per gallon from a year ago and 87.6 cents from a month ago.

Prices at the pump have slipped below an average of $2 a gallon in 21 states. It was cheapest in Missouri, at an average of $1.754, according to AAA.

Nearly all remaining states' prices stand below $3 a gallon. Only Alaska is above that mark, at $3.150.

The price of diesel fuel, which is used to power most trucks, tractors and commercial vehicles, fell to a national average of $2.947 a gallon from $2.961 a day earlier, according to AAA.

The price of crude oil, the main component in petrol fuels, has also declined as crude investors fear the global economic slowdown will decrease demand for fuel. The contract settled Tuesday at a 21-month low of $54.39 a barrel.

The AAA figures, compiled by Oil Price Information Services, are state-wide averages based on credit card swipes at up to 100,000 service stations across the nation. These are state-wide averages, and individual drivers may see different fuel prices in their area. To top of page

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