Gas Prices Continue to Fall

Consumers found gas prices returned to normal in the last week after a pipeline leak last month caused a temporary price spike, especially in the Mid-west.

The national average price of self-serve unleaded fell to $2.692 a gallon today, down from $2.710 last Friday, according to AAA. The price is almost back to its level of four weeks ago.

The price of diesel fuel is $2.975 a gallon, up a fraction of a cent from last week.

The outlook for the fall suggests oil prices remaining in the narrow range they occupied throughout the summer, which should keep gasoline stable.

Weak demand

"There continues to be little evidence to suggest that the economy is set for a rapid recovery," said Andrew Delmege, AAA's manager of regulatory affairs. "Many economists and market watchers believe the domestic economy has a long road back to substantial growth and, consequently, increased demand for energy. This can help to explain why oil prices have remained in a $70-$80 price range since Memorial Day."

The U.S. Energy Information Administration reported this week that U.S. stockpiles of both oil and gasoline were down a bit in the last week, but both remain near 20 year highs. U.S. refineries have reduced their output by two percent, and are now operating at about 85 percent capacity.

The states with the most expensive gasoline today are:

Alaska ($3.484)
Hawaii ($3.421)
California ($2.993)
Washington ($2.991)
Idaho ($2.969)
Oregon ($2.913)
Utah ($2.886)
Montana ($2.884)
New York ($2.821)
Illinois ($2.818)

The states with the least expensive gasoline today are:

New Jersey ($2.499)
South Carolina ($2.507)
Missouri ($2.534)
Texas ($2.549)
Tennessee ($2.551)
Mississippi ($2.555)
Virginia ($2.558)
Alabama ($2.560)
Georgia ($2.575)
Louisiana ($2.578)