Gas prices continue modest decline

WASHINGTON (UPI) — The average price of gasoline remained below $5 per gallon on Monday according to figures released by AAA, continuing a modest decline from last week’s record highs. The national average stood at $4.967 per gallon — a decline of 3.5 cents from Tuesday when prices hit an all-time peak of nearly $5.02, AAA reported. The average price of diesel was $5.80, up 2.5 cents from last week but 2 cents lower than its peak on Friday. Average prices for regular unleaded fell to $5 per gallon on Friday and declined further to $4.983 on Sunday. Despite the nationwide decline, 17 states still had average prices of $5 per gallon or more on Monday, topped by California at $6.398. Nevada had the second-highest state average at $5.641 per gallon, followed by Alaska at $5.605, Hawaii at $5.552, Washington at $5.543, and Oregon at $5.536.

The auto club credited the drop in prices mainly to decreased demand, which fell last week from 9.2 million barrels per day to 9.09 million barrels. “The slight drop in gas demand has helped to limit pump price increases,” AAA said. “However, as crude oil prices remain volatile, the price per gallon for gasoline will likely remain elevated.” Crude prices dropped last week as global markets reacted to a move by the U.S. Federal Reserve to raise interest rates by 0.75 percentage points, triggering concerns of slowed economic growth. The U.S. government also reported higher levels of domestic oil stocks, contributing to downward pressure on prices. Reporting by Don Jacobson