Gas Prices Drop to $2.94, Lowest Level in Nearly 4 Years

Nov 10, 2014 06:00 PM EST | Matt Mercuro

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Drivers continue to see cheaper prices at the gas pump, as the average price of gallon of gas in the U.S. dropped 13 cents in the past two weeks to its cheapest in nearly four years, according to the latest Lundberg survey released on Sunday.

Gasoline prices dropped to $2.94 a gallon of regular grade gasoline, its lowest level since December 2010. The survey was conducted on Nov. 7.

The drop in price is mainly driven by lower crude oil prices, which declined further during the period, said Trilby Lundberg, publisher of the survey, according to Reuters.

"Crude oil dominates what gasoline prices are and what gasoline prices will do," Lundberg said,

She added that the direction of crude oil prices in the coming weeks and months will decide whether gasoline prices will continue to fall or start trending upward.

"If they don't decline further, then this will be the end or nearly the end of this very steep price drop," she said.

The gasoline price is down nearly 28 cents compared to the same time in 2013, and has dropped 78 cents from a 2014 peak of $3.72 in May.

The highest price within the survey area was recorded in San Francisco at $3.27 a gallon. The lowest was recorded in Memphis at $2.65.

AAA Mid-Atlantic predicts that in Pennsylvania and New Jersey the price of gas could drop another five to 15 cents before Thanksgiving weekend.

"You're also going to see the cost savings when we turn to producing the winter blend of gasoline," says Jim Lardear, a spokesman with AAA, "which is actually cheaper to produce than the gas that we see sold in the summertime."

Lardear believes that one of the reasons the prices keep falling is because there's a consistent decrease in the price of crude oil, according to CBS Philly.

"Compared to about a year ago, we're seeing that you're saving maybe $10 or so a gallon every time you fill up your car," he added, "if you've got a 15 gallon tank."

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