U.S. Gas Prices Below $2.50

The national average retail price for gasoline fell below $2.50 a gallon for the first time in 12 weeks, while diesel dropped under $3, the government’s energy forecasting agency said Monday.

The price for self-serve regular grade declined 12.3 cents in the last week to $2.48 a gallon, the lowest level since Aug. 8, according to the Energy Information Administration’s weekly survey of service stations. Still, drivers were paying nearly 45 cents a gallon more than a year earlier.

In California, the average price for self-serve regular fell 8 cents to $2.747 a gallon -- not quite 38 cents higher than a year earlier.

Diesel fuel showed the biggest decrease, falling 28.1 cents to $2.88 a gallon, although it remained up 67 cents from a year earlier, the energy agency said.

Pump prices are falling as more oil refineries come back online after being shut down by hurricanes Katrina and Rita.

In the government’s weekly survey, the West Coast had the most expensive regional gasoline, with the average price at $2.712 a gallon, down 8.5 cents. The Midwest had the cheapest gasoline at $2.326 a gallon, down 12.5 cents.

Several major oil companies have posted record earnings in the current reporting cycle, prompting the Senate Energy and Natural Resources Committee and the Commerce Committee to call for a joint hearing next week on gasoline prices.