Gas Prices Fall Below $3.75 a Gallon for First Time Since April

Prices at the pump declined for the third straight week and for the first time since April 9, gas prices dropped below $3.75 a gallon this week, according to the latest AAA survey.

The national average price of regular grade gasoline was $3.71 a gallon on Sunday, down 7 cents from last week and down 24 cents in the last month, yet prices remain $1.01 higher than year ago prices and 39 cents below the all time high of $4.11 a gallon set in July 2008. Locally, the average price for a gallon of regular unleaded gasoline went for $3.73 on Sunday, down 7 cents from a week ago but still $1.05 more than a year ago.

In its latest Short Term Energy Outlook, the Energy Information Administraiton predicts that the May average retail gas price of $3.91 a gallon will be the peak monthly average price this driving season. The EIA now forecasts that the gas prices will average $3.75 a gallon during the summer driving season.

“Prices at the pump continue the decline, dipping below the $3.75 a gallon mark this week for the first time since April, which is welcome news for motorists as the summer driving season gets underway,” said Ragina C. Averella, AAA Mid-Atlantic spokeswoman, in a statement.

“Analysts note further declines in the coming weeks are likely, primarily due to a 50-60 cents drop per gallon in wholesale prices in the last week. We anticipate gas prices will drop to within the $3.50 to $3.60 per gallon range by month’s end – just in time for the long July 4th holiday weekend.”

Here is the cheapest gas prices in the Essex-Middle River area, according to MarylandGasPrices.com: