The national per gallon price for regular gasoline, according to figures compiled by AAA, now stands at $3.730 down from $3.741 yesterday (August 18). One month ago the level stood at $4.077.

Although still well above the 2007 price of $2.768, falling demand and the fact that Tropical Storm Fay did not enter the Gulf of Mexico have helped to keep prices trending downward after the record of $4.114 on May 17.

Drivers in Alaska continue to pay the highest prices at the pump at $4.568 followed by Hawaii at $4.423. The lowest levels posted are in Missouri at $3.496 and in South Carolina at $3.515.

Diesel fuel is selling for $4.373 a gallon down from $4.387 yesterday. One month ago the price was $4.828. A year ago the price was $2.925.

E85 ethanol, which has been growing in popularity, currently sells for $3.41 a gallon down from $3.051. Although less expensive per gallon, E85 is not as efficient as gasoline and ultimately can be a more expensive option for drivers.

Increasingly drivers are abandoning trucks and SUVs in favor of smaller, more fuel-efficient models, a trend that is forcing carmakers to re-evaluate their product lines and to push the production of hybrids and alternative fuel vehicles.