Gas Prices Continue Slide

Gas Prices Continue Slide

Some states are seeing prices below $3 per gallon.
WASHINGTON, D.C. – New information released by AAA shows gas prices across the country are at their lowest level in nearly three years.

The national average for a gallon of regular unleaded is $3.18 per gallon, but the average is higher in Pennsylvania at $3.29.

Analysts say the drop is a combination of factors including no large hurricanes in the Gulf States to disrupt oil supplies. Some economists warn Americans are in a driving lull, and the lull is going to end with the holiday season beginning.

“We think about this time of year, we're smack dab in between the summer driving and holiday driving season so this is a lull in the time for which we see demand for gas,” said Kathy Deck, professor of economics at University of Arkansas. “The reason we haven't seen it as low here, it's about where our capacity comes from, how much it costs to transport it here, and again, the competition in this market place.”

Some analysts are also warning about the possible consequences if the U.S. fails to reach a deal with Iran over its nuclear program. An increase in driving over the holidays could send gas prices higher as well.
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