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Gas falls below $1.70

Fuel prices march downward for 83rd day in a row, remaining above $2 a gallon in only 3 states, survey says.

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By Kenneth Musante, CNNMoney.com staff writer

Can the markets sustain a stock rally through the end of the year?
  • Yes
  • No

NEW YORK (CNNMoney.com) -- Gasoline prices fell below $1.70 a gallon at the pump Tuesday, according to a daily survey of gas station credit card swipes.

Regular unleaded slipped 1.8 cents to a national average of $1.698 a gallon from $1.716 on Monday, according to motorist group AAA, the lowest since March 1, 2004, when gas was selling at an average of $1.69.

The price of gasoline has fallen for 83 consecutive days, and is more than $2 a gallon cheaper since hitting a record high of $4.114 on July 17th, according to AAA data. The price of crude oil, gasoline's primary ingredient, has fallen more than $100 a barrel on the open market.

On Tuesday, average gas prices remained above $2 a gallon in only 3 states: Alaska ($2.714), Hawaii ($2.526) and New York ($2.051).

Gas was the cheapest in Missouri, where the average price fell below $1.50 a gallon to $1.484.

Diesel: The price of diesel fuel, which is used in most trucks and commercial vehicles, also continued to slide.

The price fell 0.8 cents Tuesday to a national average of $2.629 a gallon, according to the AAA survey.

Diesel prices have fallen more than $2 a gallon since hitting a record high of $4.845 on July 17.

Ethanol: As falling demand pulled down gasoline and diesel prices, the price of E85, an 85% ethanol blend made primarily corn, fell to $1.537 a gallon from $1.561 on Monday, according to AAA.

E85 can be used in place of regular gas in specially configured "flex-fuel" vehicles, but it is not readily available in some states.

The AAA figures 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 lower fuel prices in different areas of each state. To top of page

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