Gas Prices: Predicted Post-Labor-Day Drop is Here

Gas prices have fallen 24 days in a row to a national average of $2.37 for regular unleaded, the lowest it has been since late February, and motorists should see prices retreat even more in the coming weeks.

The AAA Daily Fuel Gauge Report said the national average for regular unleaded gasoline fell 7 cents the past week and 22 cents the past month. With the Labor Day weekend in the rearview mirror, demand for gas typically falls this time of year, so AAA says to look for more of the same.

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"Prices are expected to continue to slide as driving demand experiences a seasonal decrease heading into the fall, provided the price of crude remains relatively low and refineries are able to conduct routine maintenance without issues," AAA said in a release.

In addition, refineries in several parts of the country will soon switch to winter blends of gasoline that are less expensive to produce than the federally mandated summer blends (designed to reduce emissions), adding to the savings at the pump.

AAA and others had predicted that gas would fall below $2 a gallon in several parts of the country this fall, and South Carolina became the first state with an average price of less than $2 since early March. The statewide average was $1.96 in South Carolina Thursday. Alabama and Mississippi averaged $2.02, according to AAA.

GasBuddy.com's price spotters reported gas also was selling for less than $2 at stations in Georgia, Missouri, Tennessee, Texas and elsewhere. (Prices fluctuate throughout the day and could change.)

Pump prices fell the past week in all but a handful of areas, and some of the biggest declines were in the Great Lakes region. Average prices fell by double digits in Illinois, Indiana, Michigan and Ohio.

The average price for regular unleaded remained above $3 in just four states — Alaska, California, Hawaii and Nevada — and pump prices continued to fall there as well. Alaska had the nation's most expensive gas with a statewide average of $3.34 for regular unleaded.

AAA said the national average for regular unleaded on Thursday was $1.06 lower than a year ago, and diesel fuel was $1.25 lower at $2.55 per gallon. Premium gas, at $2.88, was 92 cents less than a year ago.

Oil has been trading near a six-year low recently, which is the main reason for lower gas prices.