For the past eight days gasoline prices have continued to trend downward, reaching an average of $3.658 per gallon on Monday, September 8, according to figures compiled by AAA.

The highest prices continue to be paid in Alaska and Hawaii where residents face $4 a gallon or more. The least expensive fuel can be found in New Jersey at $3.431 a gallon.

The record high for gasoline was reached on July 17 at $4.114 a gallon. Although prices have fallen substantially from that level, they still stand 83 cents higher than 2007 levels. Consequently, demand for gasoline dropped off 3-4% during the normally high June to August driving season.

Continued high concern for weakening demand for fuel has brought the price of crude oil down to its lowest level in five months, although prices went up early Monday on fears over the potential effect of Hurricane Ike. Crude futures for delivery in October stood at $107.33 Monday morning, up $1.10 a barrel.

Hurricane season always raises the threat of higher gas prices due to disruption of petroleum facilities in the Gulf of Mexico. Tropical Storm Hanna was responsible for heavy rain only along the eastern coastline last week, but Hurricane Ike is on a path for the Gulf.

Ike, currently a Category 2 storm, is expected to strengthen as it heads for landfall somewhere along the border between Texas and Louisiana late this week, according to the latest tracking data.