On October 10, the national average per gallon cost for regular unleaded gasoline had fallen to $3.3079, a drop of 35.03 cents in two weeks according to figures compiled by the Lundberg Survey.

The price, the lowest since March 21, 2008, was a sharp contrast to the peak price of $4.1124 a gallon recorded on July 11. Diesel has come down 21 cents in the last two weeks to $3.95 a gallon.

Trilby Lundberg, in an interview with Automotive News said, "Plummeting oil prices and caving gasoline demand have combined to bring the biggest retail gasoline price cut in the history of the market. We've been doing this 58 years. This is truly the biggest price drop."

Fears of a global recession after the U.S. stock market's rocky ride last week sent crude oil futures down 10 percent with barrels set for November delivery closing at $77.70 on Friday.

The retreat in gas prices, however, may be too late to stem changes in consumer behavior affecting the sale of both fuel and automobiles. Travel in the United States is down by nearly 10 billion vehicle miles as consumers are turning to smaller, more fuel efficient vehicles and seeking alternate forms of transportation.

"If crude oil prices don't spike, we can expect further price cutting for two reasons," Lundberg said. "Gasoline demand will continue to shrink in our weak economic condition, and retailers, who have been receiving deep buying price cuts, will be anxious to pass through any further price cuts they receive quickly. They need the sales."