Retail prices drop for 34th straight day to a national average of $3.717 a gallon, remaining over $4 in four states.
NEW YORK-- Gasoline prices have fallen nearly 40 cents a gallon from their record highs after 34 straight days of declines, according to a daily survey released Wednesday.
The price of regular gasoline fell to $3.717 a gallon from $3.73 a day earlier, according to a survey of gas station credit card swipes from motorist group AAA and the Oil Price Information Service.
Gas prices have fallen more than 9% since hitting a high of $4.114 a gallon on July 16. The drop mirrors a 22% decline in crude price futures from their record high of $147.27 a barrel.
A major test for energy prices comes Wednesday when the government issues its weekly inventory report. Analysts surveyed by energy information service Platts expect gasoline supplies to have declined 3 million barrels, a signal that - squeezed between high crude prices and lower consumer demand for pricey fuel - refiners faced with razor-thin profit margins may have been forced to cut back production
Diesel: Diesel fuel, which is used to power most trucks and commercial vehicles, fell to $4.359 a gallon from $4.373 a day before, according to AAA.
Because of its use in shipping and transportation, high diesel prices can drive up operating costs, which companies then pass along to buyers by raising prices.
High fuel prices were partially responsible for driving wholesale prices up 9.8% over the past 12 months, the sharpest yearly jump since the 1980s.
Ethanol: The price of E85, an 85% ethanol blend, fell to $3.035 a gallon on average from $3.041, AAA reported.
Expensive petroleum-based fuels have helped raise the profile of corn-based ethanol, which can be used as a gas alternative in specially configured "flex-fuel" vehicles.
However E85 fuel is difficult to find outside the corn-producing midwest region, and is not sold in some states. It also generally burns less efficiently than gasoline.
According to AAA estimates, drivers of flex-fuel vehicles running E85 would have to pay the equivalent of $3.994 a gallon to get the same mileage as gasoline.
State prices: Gasoline remained above an average of $4 a gallon in four states, according to AAA: Alaska, the most expensive state at $4.576 a gallon, Hawaii at $4.435 a gallon, California at $4.018 and Utah at $4.014.
The cheapest gas on average was found in Missouri at $3.484 a gallon, followed by South Carolina at $3.496.
Diesel prices were most expensive in Hawaii, with drivers paying an average of $5.309 a gallon. Diesel was cheapest in Missouri, where prices fell to an average of $4.085
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