Gas prices fall nearly 53 cents in 2 weeks

October 27, 2008 9:01:16 AM PDT
The price of gas has taken a huge plunge. In fact, the average nationwide price per gallon is $1.33 less than it was when prices peaked in July.

"I came all the way from San Francisco just to get gas for $2.59. I couldn't believe it. Is this a dream? cause I haven't seen these prices since God knows when," said a driver.

At $2.59 a gallon, GasBuddy.com says the Bonfare gas station in Vallejo has the cheapest unleaded fuel in Northern California. In the last two weeks, the national average price per gallon has plummeted 53 cents.

"This is about the cheapest I've found," said Lennotch Taplett, Berkeley.

Taplett noticed the difference when he filled up his 1968 Plymouth Fury III.

"Last month I think it was around $82 to fill it up and now it's about $75," said Taplett.

AAA says consumers actually helped force the price down. Drivers slowed their gas consumption when the national average topped $3 a gallon. Add the global economic crisis and the oil companies had to lower prices in order to sell. The Bay Area, however, still has some of the highest priced gas in the country. With an average of $3.24, only Anchorage and Honolulu are higher.

"It's more expensive here than it is in Seattle," said Tom Cowan.

"How much are you guys paying in Seattle?" asked ABC7's Alan Wang.

"I was getting $2.85 to $2.90 depending," said Cowan.

El Hullana, a farmer from Merced, saw the price to fill up his tank go from $160 to $100. So does it mean he'll pass the savings on to the consumer by lowering his vegetable prices?

"It's still not cheap enough where we can make a profit right away. It's gonna take a good year before we can come out of this hole, for me and other farmers, too. They've been hurting," said Hullana.

AAA projects prices to continue sliding moderately hitting a national average of $2.50 a gallon before Thanksgiving.

It brings a sigh of relief for those in the transportation industry - including cab drivers who have been absorbing the high cost of fuel. By the way, the cheapest unleaded gas in America can be found in Des Moines, Iowa. A station there is selling it for $2.10 a gallon.


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