Holiday drivers see lower gas prices

Associated Press / August 31, 2010

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NEW YORK — There is good news at the gas pumps as Americans get ready to fill the tanks of their cars, RVs, and boats for the Labor Day weekend.

The national average price for gasoline has been falling steadily this month, reaching about $2.68 for a gallon of unleaded yesterday, according to AAA and others. That’s about 6 cents a gallon less than a month ago and 7 cents less than it was on the Friday before the July Fourth weekend.

The Massachusetts average dropped 5 cents to $2.639 a gallon, AAA of Southern New England said yesterday.

In its weekly report, the US Energy Information Administration said the national average for a gallon of unleaded was $2.68, down about 2 cents from a week ago.

Prices in major cities ranged from $2.62 a gallon in Denver to $3.08 in Los Angeles and $3.12 in San Francisco.

A plunge in wholesale gasoline prices earlier this month is pushing down prices at the pump, said a PFGBest analyst, Phil Flynn. The price drop comes as the summer driving season winds down, and gasoline supplies remain nearly 12 percent above the five-year average, with overall demand below prerecession levels.

Most analysts believe retail prices will continue to retreat in September.