Gasoline Prices Continue 34-Day Decline Across U.S.; Average Now $3.717

August 20, 2008 12:35 p.m. EST

New York, NY (AHN) - After peaking at $4.114 a gallon for unleaded gasoline on July 16, prices nationwide have dropped nearly 40 cents since then, according to a daily survey released Wednesday by AAA.

The daily decline in gas prices has now reached 34 consecutive days, according to a survey of gas station credit card swipes from motorist group AAA and the Oil Price Information Service. The price of gas is now $3.717, down nearly two cents from $3.737 a day earlier.

The 9 percent drop in gas prices since July 16, mirrors a 22 percent decrease in crude price futures from their record high of $147.27 a barrel.

Unleaded gas isn't the only motor vehicle fuel to see price decreases. Diesel, used to power large trucks and other commercial vehicles, dropped to fell to $4.359 a gallon from $4.373 a day before, AAA reported. The cost of Ethanol, or E85, an 85 percent ethanol blend made from agricultural products like corn, dropped to $3.035 a gallon on average from $3.041, according to AAA. The problem with E85 fuel is difficult to find outside Midwest region where the highest corn production is generated plus this type of fuel burns less efficiently in cars than regular gasoline. It is also not available in some states because of remoteness.

As for states with the highest and lowest gasoline prices, Alaska and Hawaii continue to run 1-2 as the most expensive, according to AAA. Gasoline in Alaska averages $4.576 a gallon, followed by Hawaii at $4.435. There are two other states with gas prices at or above $4 a gallon: California at $4.018 and Utah at $4.014. Missouri has the cheapest gas at $3.484 a gallon. South Carolina is second at $3.496 a gallon.