U.S. Gas Prices at the Pump Drop by 2 Cents on Average

Gasoline prices fell about 2 cents a gallon in the last two weeks, reflecting recent drops in the price of crude oil and plentiful supply, an industry analyst said Sunday.

The combined national average for all grades of gasoline was $1.89, said Trilby Lundberg, who publishes the Camarillo-based Lundberg Survey. The price was down from $1.91 on Aug. 27.

The survey, taken Friday and released Sunday, polled about 6,000 gas stations across the United States.

Self-serve regular, the biggest seller, was going for $1.86 on average. The mid-grade national average was $1.96 and the U.S. average for premium was $2.05.

Lundberg noted that crude oil prices, which began the month at about $44 a barrel, had been declining on most trading days since then. Prices at the pump are beginning to catch up with those drops, she said.

Retail prices declined despite the Labor Day weekend.

The idea of significantly increased demand on what are considered to be heavy driving holidays is a myth, Lundberg said. Pump prices are more closely tied to crude oil prices and seasonal changes in driving and supply, she said.

Prices have dropped about 22 cents since reaching a peak of $2.10 for the national average of all grades May 21.