Gas falls to $2.85 per gallon

The average U.S. pump price for regular-grade gasoline fell 8 cents to $2.848 a gallon over the past week, a government report showed Tuesday.

The nationwide average in the week ended Monday was up 85.5 cents, or 43 percent, from $1.993 a gallon a year ago, according to the U.S. Energy Department report. It was the first decline in the past four weeks.

The nationwide average diesel price increased 0.6 cent to a record $3.15 a gallon. It was the second-straight weekly record and fourth consecutive increase in diesel prices.

Fuel prices have soared since the end of August after Hurricanes Rita and Katrina swept through the Gulf of Mexico, forcing refinery and pipeline shutdowns and slashing offshore oil production. Sixteen refineries in Texas and Louisiana were closed Sept. 21-22 for Rita, and seven of those are still shut after losing power or sustaining damage.

Combined with three other refineries in Louisiana and Mississippi that are still shut because of flooding and other damage from Katrina in late August, about 2.73 million barrels a day of refining capacity is currently idle, according to the Energy Department's Web site. Last week, 3.16 million barrels of refining capacity was shut.

The latest U.S. retail gasoline average is below the record of $3.069 a gallon reached on Sept. 5, a week after Hurricane Katrina reached land. The government's gasoline price report is based on a survey of about 1,200 filling stations in 50 states.