AAA Fuel Gauge Report: National Gas Prices in Steady Decline

WASHINGTON, D.C. – The national average price for a gallon of regular gasoline dropped to $3.35 this week, according to the latest AAA Fuel Gauge Report. This is 5 cents less expensive than one week ago, 23 cents less than one month ago and 47 cents less than the same day one year ago. The year-over-year discount is the largest since Oct. 17, 2009.

The national average declined for 36 straight days as of Oct. 7 and dropped 25 cents during that time period. This is the longest streak of daily declines since Sept. 17-Dec. 12, 2008, when prices fell $2.20 per gallon over 86 consecutive days.

The average price at the pump is lower in every state and Washington, D.C., for the week, month and year, but the degree of decline varies, AAA said. The Midwest and central United States are seeing the largest weekly price drops, led by discounts greater than 10 cents in Michigan, Indiana and Ohio.

Drivers in the Midwest and central states are also experiencing the largest month-over-month relief, with 10 states paying at least 30 cents less than last month. However, the largest year-over-year drop is in California, where drivers are paying more than 80 cents less than they did one year ago.

Meanwhile, states west of the Rocky Mountains are seeing the smallest monthly declines, with prices in Alaska, Arizona, Washington, Oregon, Wyoming, Idaho, Nevada and California dropping less than 10 cents per gallon. Additionally, prices have fallen less than a penny per gallon in South Carolina and Washington, D.C.

AAA forecasts that retail prices will continue to decline in the coming months due to sufficient supplies, flat demand and the use of cheaper winter-blend gasoline. Barring a hurricane or other unexpected disruption to production and distribution, the national average could fall to $3.10 per gallon by Christmas, the firm predicted. This would be the lowest price since February 2011.

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