Gas falls some more — Utah still above average

HOUSTON — Pump prices continued to tumble in the past week, falling more than 25 cents to a national average of $2.656 a gallon, new government figures show. In some places, gasoline is now selling for less than $2 a gallon.

But Utah gas prices remain higher than the national average. The Utah average price for a gallon of regular unleaded on Monday was $2.97 — the sixth-highest in the nation, according to auto club AAA. Utah's gas prices are lower only than those in Alaska, Hawaii, California, New York and Nevada.

A weekly report released Monday afternoon by the U.S. Energy Information Administration showed the Gulf Coast had the cheapest prices, with an average of $2.46 a gallon, down 27.4 cents in the past week. The Midwest was next lowest at $2.50, followed by the East Coast ($2.68), the Rocky Mountain region ($2.76) and the West Coast ($3.05).

Prices have fallen nearly 50 cents in the past two weeks and are down almost 22 cents from a year ago.

Nationally, the average price for diesel fuel was $3.29, down 19.4 cents in the past week, the EIA reported.

Already, gasoline prices have dipped below $2 a gallon in some parts of the United States, as the impact of plunging oil prices and reduced driving are finally taking hold.

In Ohio, the Web site GasBuddy.com, where consumers post prices they spot, said a few stations in the Cincinnati suburbs were now charging $1.99 for regular.

The national average for a gallon of regular fell 3 cents overnight to $2.67, according to AAA, the Oil Price Information Service and Wright Express. That's roughly a dollar less than what was paid just a month ago and 18 cents below year-ago prices.

Only three states — Alaska, California and Hawaii — have average prices for regular grade above $3 a gallon, AAA said.

Gasoline prices have been sliding as oil prices have dropped to the lowest level in more than a year, dipping below $62 a barrel at one point Monday. Oil prices have plunged 57 percent from a record $147.27 on July 11.

The markets are worried about the potential for a severe global economic slowdown that would curb demand for fuel.

Gasoline prices also typically decline at this time of year after the peak summer driving season, adding to the steep fall off, said oil trader and analyst Stephen Schork. He says the national average for gas could reach $2.25 a gallon in the coming weeks.