U.S. Gas Prices Declining; Fall 9 Cents in Two Weeks

Gas prices in the U.S. are falling. The average prices for a gallon of gasoline have fallen almost nine cents a gallon in the past two weeks as demand has weakened, according to an industry analyst.

The deep rate of unemployment has sent demand down, Trilby Lundberg, editor of the Lundberg survey, told Reuters. It is the work commute that creates most of our gasoline demand.

Results from the Lundberg survey, based on about 2,500 stations throughout America, suggest that the national average prices-per-gallon of regular gas has fallen almost nine cents in the past two weeks and almost 18 cents a gallon over the past six weeks. The average price per gallon of gas on Oct. 21 was roughly $3.47, and it's fallen nine cents on average since then.

Lundberg said the reason for the recent decline in U.S. gas prices is a gaping wound for refiners already pressured by higher crude prices. In other words, demand for gas is falling, dropping the prices, as crude prices rise -- leaving refiners squeezed on profits in the middle.

Few others in the U.S. will complain, however, considering money is always tight during the holidays and though the economy is showing signs of perking up, unemployment still remains high and wage growth flat. Also, the current average price per gallon of gas in the U.S. of $3.29 is still about 38 cents more than the same time one year ago.

The city with the lowest gas prices currently is Albuquerque, New Meixco, where drivers are paying about $2.84 per gallon, while San Francisco is the highest, with an average price of about $3.67 per gallon.