Gas prices continued their decline for the fourth consecutive week, dropping to $3.65 a gallon on Sunday according to the latest AAA survey.
The price represents a 6 cent drop from a week ago yet still 98 cents more expensive than last year. Still, the price is 43 cents below the all time high of $4.11 a gallon set nearly three years ago.
According to AAA, the trigger for declining gas prices – crude oil – was also on the decline this week. The escalating Greek debt crisis, coupled with shrinking U.S. factory activity in the Mid-Atlantic region (shrinking 7.7 percent to its lowest in two years, contrary to forecasts for a 6.8 percent rise) and strength in the dollar, sent crude oil prices downward for most of the week. Crude oil settled at $93.01 Friday, down nearly 7 percent this week in the biggest fall since May.
AAA reports that analysts believe Greece will weigh into oil prices in the weeks ahead, contributing to the overall downward trend expected given recent negative economic data, both nationally and internationally.
“Prices at the pump rarely decline as rapidly as they increase, however, gas prices have steadily declined over the past four weeks just in time for the summer driving season,” said Ragina C. Averella, AAA Mid-Atlantic spokesman.
“Since peaking just shy of the $4 mark in early May, gas prices have dropped 30 cents per gallon. With the July Fourth holiday weekend just two weeks away, recent gas price declines are welcome news for motorists planning to take to the road.”
