The price of gas continued to fall last week and is now at a price range not seen since early 2005.In most areas, retail gas prices fell more than a nickel.
Nationally, gas prices dropped from $1.73 a week ago to $1.66. A year ago, gas was selling for an average of $3.00, according to AAA.
In Virginia, gas prices dropped from an average of $1.65 a week ago to $1.56. In the Prince William area, gas can be found for $1.39 at many stations. Gas was an average of $2.88 a year ago in Virginia.
A significant drop in global oil demand is seen by experts as the reason for the drop in retail prices.
Petroleum consumption is shrinking for the first time in 25 years, according to the International Energy Agency.
The agency says world oil demand for 2008 will be down from last year by several tens of thousands of barrels. Crude prices closed the week at $46.28.
Currently, a glut of oil exists on world markets. Organizations of the Petroleum Exporting Countries, OPEC, meets again to discussion production cuts Dec.17. Gas prices generally track crude prices as crude oil is the single biggest component in gasoline.
Despite holiday errands and low gas prices, people are driving less, according to AAA.
The government reported this week that Americans drove more than 100 billion fewer miles between November 2007 and October 2008, compared to the same period last year—the largest continuous decline in American driving in history.
The south Atlantic—a block of eight states and Washington, D.C. to include Prince William—had the biggest decline of any region.
AAA projects gas prices will continue to decline this month, given the falling price of crude oil, the single biggest component in gasoline.
"Gas prices are one economic bright spot for motorists right now and we will enjoy lower gas prices yet," said Martha M. Meade, manager of public and government Affairs, AAA Mid-Atlantic.
"Prices at the pump have not yet caught up with lower crude oil prices, so we can expect gas to cost even less in the days ahead," she said.
