Gas prices retreat after weekend spike

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NEW YORK (CNNMoney.com) -- Gas prices posted gains this weekend for the first time in 86 days, according to a national survey of credit card swipes. But on Monday fuel prices began to retreat again.

Regular unleaded was selling at a national average of $1.66 a gallon on Monday, down 0.3 cents from Sunday's average of $1.663, according to motorist group AAA. On Saturday gas broke a nearly three-month streak of declines, rising to $1.66 a gallon.

Gas prices hit a record high average of $4.114 a gallon in mid-July as the price of crude oil, gas's main ingredient, peaked, according to AAA. But the price of crude is down more than 67% since July as the slow economy has weighed on fuel consumption.

Low gas prices are starting to spur demand for fuel again in some areas, according to Jason Toews, co-founder of GasBuddy.com, a service that lets motorists post local fuel prices online.

According to Toews, gas prices could be in for a serious bounce once the spring and summer driving season hits next year.

Gas is currently selling at statewide averages below $2 a gallon in all but two states, according to AAA: Alaska ($2.639) and Hawaii ($2.453). On Monday Missouri became the first state to dip below $1.50 a gallon, posting an average price of $1.488.

Out of all major U.S. cities, Anchorage, Ala., has the highest average gas prices, at $2.478 a gallon, according to GasBuddy; Kansas City, Mo., had the lowest average, at $1.339.

Diesel: The price of diesel fuel, which is used in most trucks and commercial vehicles, continued to slide, falling 1.6 cents to a national average of $2.536 a gallon, according to AAA.

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

Diesel was cheapest in Kansas at $1.631 a gallon on average, and was most expensive in Alaska at an average of $2.953 a gallon.

Ethanol: The price of E85, an 85% ethanol blend made primarily from corn, rose to an average of $1.536 a gallon in Monday's survey from $1.521 a day earlier, 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. GasBuddy prices are averages of local regular unleaded gasoline prices that about 700,000 volunteer gas prices spotters have posted online. Individual drivers may see lower fuel prices in different areas of each state.