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Gasoline Prices Continue to Fall
01:47 p.m. EDT, August 06, 2008

For the 20th day, gasoline prices fell, standing at $3.862 per gallon nationwide for regular, a welcome 25 cent relief from the July 16 record of $4.114.

According to daily figures compiled by AAA, the dropping prices for both retail fuel and crude oil reflect the extent to which Americans are consuming less gasoline by driving less, opting for smaller, more fuel efficient vehicles, or using different forms of transportation.

Alternative fuels have also risen in popularity with many drivers turning to corn-based ethanol, now more readily available particularly in agricultural regions of the Midwest.

Currently the price for E85, an 85% blend of clean-burning ethanol, stands at $3.132 a gallon. Although less expensive, ethanol is also less efficient. To achieve the equivalent performance for a gallon of gasoline, consumers are actually paying $4.644 a gallon according to AAA.

Diesel fell from $4.644 to $4.633, a level still 56 percent above prices one year ago. Because most trucks and commercial vehicles are diesel-powered, higher shipping costs are driving up consumer prices across the board.

Currently consumers in Alaska are paying the most for gasoline at $4.63 a gallon with Hawaii at $4.468 and California at $4.189. Oklahomans enjoy the least expensive fuel at $4.613 a gallon with Missouri at $3.628 and Minnesota at $3.642.

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