Gas Prices Fall | NBC New York

Gas Prices Fall

Drop in demand translates to lower prices at the pump



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    (Photo by Bill Pugliano/Getty Images)

    Life on the road for Labor Day travelers may be less taxing on drivers' wallets, as the average price of gas in the United States fell further from the record high it set in July.

    The average cost of a gallon of gas dipped beneath $3.70 after peaking at $4.114 on July 14th, according to the Automobile Association of America (AAA). The average is determined by a random sampling of gas prices paid for by credit cards at stations around the nation. The current price of $3.688 a gallon was reached as the price of crude oil experienced its largest drop––down $6.59 a barrel––in 17 years.

    Oil prices have retreated over the summer due to a drop in consumer demand and a stronger dollar. Many families in the U.S. curtailed the use of cars and opted out of summer road trips in favor of "staycations" at home.

    Gas is no longer above $4 a gallon anywhere in the contiguous 48 states, unlike in Alaska or Hawaii. The most expensive gas in the nation is in Alaska, where the average price is $4.41 a gallon. The cheapest gas in the States is found in St. Louis, MO, where the average price at the pump is $3.44 a gallon.