Ho Ho Ho! Gas Prices Still Falling

After leveling off last week, gasoline prices resumed their decline this week, giving consumers a little extra cash for the holidays. Analysts say pump prices are being pushed lower by falling oil prices amid mounting economic worries.

The national average price of self-serve regular today is $3.250 per gallon, up from $3.293 last Friday, according to AAA's Fuel Gauge Survey. That's almost 15 cents a gallon less than what motorists were paying a month ago. However, consumers with longer memories will remember they were paying 27 cents a gallon less at the pump this time last year.

The price of diesel fuel is also going down. The average price of diesel fuel today is $3.881 per gallon, down from $3.920 a week ago.

Gasoline market wins out

For the last few weeks gas prices drifted lower in the face of rising crude oil prices - suggesting one of those markets was wrong. Now, it appears gasoline futures traders had the correct read on the marketplace.

"The same factors that have impacted crude prices for the last several months continued to exert pressure on prices last week, as global economic malaise and demand destruction remained the primary focus of traders," said Avery Ash, AAA's Manager of Federal Relations.

"Early-week warnings that the sovereign debt of all 17 euro zone countries—including Germany and France—could have their ratings downgraded, along with Thursday’s news that the European Central Bank would halt bond purchases, further reducing liquidity, were seen as bearish news and sent crude prices tumbling."

Retail gasoline prices responded in kind. Prices are down throughout the country, with only the Pacific Coast and Northeastern states paying the highest pries. In New Mexico, the state-wide average price is one penny away from falling below $3 a gallon.

The states with the most expensive gas this week are:

• Hawaii ($4.057)
• Alaska ($3.938)
• California ($3.568)
• New York ($3.556)
• Connecticut ($3.547)
• Washington ($3.492)
• Oregon ($3.433)
• Nevada ($3.382)
• Vermont ($3.375)
• Maine ($3.369)

The states with the least expensive gas this week are:

• New Mexico ($3.012)
• Missouri ($3.035)
• South Carolina ($3.062)
• Oklahoma ($3.066)
• Texas ($3.080)
• Tennessee ($3.085)
• Arkansas ($3.091)
• Utah ($3.103)
• Mississippi ($3.105)
• Louisiana ($3.111)