Gas Prices Drop Record 33 Cents In A Week

Oct. 14, 2008— -- Across the country, from the West Coast to the Midwest to New England, gas prices continue to plummet.

"Very glad to see them at $3," said Kansas driver Sandy Hickamn. "I didn't think I would see it again."

The price of a gallon of gasoline fell dramatically last week, down from its high of $4.11 a gallon just after the Fourth of July, to a nationwide average of $3.15 today, according to the Energy Information Administration.

The 33-cent price drop in the past week is the largest one-week fall on record. But what's the reason for the dramatic turnaround? Oil.

Oil prices have been falling too, down 46 percent from the record high of $147 a barrel this summer, because of lower consumption. Slowing economic growth means less demand for oil and gas overseas and at home. It's the flip side of global financial turmoil.

"To be able to save a little money at the pump is a saving grace!" said Hickman.

Drivers are noticing the difference at the pump and in their pocketbook.

"I actually saved $40 from last week!" exclaimed Texas driver Joseph Shiloh.

According to the American Automobile Association, if gas stayed at $4 a gallon, as it was earlier this year, the average family would pay $4,800 a year filling up.

As oil prices skyrocketed this summer, analyst after analyst predicted the worst; some said that prices could jump to $4.50 a gallon.