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Fuel prices extend decline

07/22/2008

Prices for gasoline, diesel and ethanol retreat again, according to AAA survey.

NEW YORK (CNNMoney.com) -- Prices at the pump extended their decline overnight, a nationwide survey of gas station credit card swipes showed Tuesday.

Regular: The nationwide average for regular unleaded fell to $4.055 a gallon, down from $4.069 the previous day, according to a daily survey from motorist advocacy group AAA.

In the past year, gas prices have risen more than 36%, causing automakers to make fuel economy and alternative fuels a top priority.

Gasoline price changes typically lag behind changes in oil prices. The price of oil has risen more than 72% over the last 12 months, but plummeted more than $16 last week over concerns that high fuel prices were cutting into demand.

Ethanol: The price of E85 ethanol, which is made from corn and other crops, fell to $3.283 a gallon on average.

While ethanol is derived from renewable sources, it is also less efficient than gasoline. As a result, E85 costs about $4.321 per gallon to get the same mileage as gas as of Tuesday, the AAA survey showed.

Diesel: The average price of diesel fuel, which is used to power most trucks and commercial vehicles, fell a penny to $4.808 a gallon from $4.818, according to AAA.

Diesel remains more than 62% higher than last year when it was cheaper than gas.

Because of its use in transporting goods, high prices for diesel can affect the prices of other items.

State prices: The AAA survey averages credit card swipes at 85,000 fuel stations around the country.

Gas prices in Alaska, the state with the highest prices, fell to $4.664 a gallon from $4.666 the day before.

Hawaii, the state with the second highest prices, saw average prices rise to $4.469. California prices fell 1.1 cents to $4.433 on average.

Drivers in Oklahoma paid the least for gas at $3.831 a gallon. Missouri was the next cheapest state for gas with drivers paying $3.861 on average, followed by South Carolina at $3.869.

Hawaii had the highest diesel prices at $5.352 a gallon, while diesel was cheapest in Oklahoma at $4.612.

CNNMoney.com, http://money.cnn.com/2008/07/22/news/economy/gasoline/index.htm?section=money_latest