Retail gasoline price falls to 3-month low: government

WASHINGTON (Reuters) - The average price U.S. consumers paid at the pump hit a three-month low, as the national cost for gasoline fell 7.1 cents over the last week to $3.81 a gallon, the government said on Monday.

The price for regular, unleaded gasoline is still $1.04 a gallon higher compared to a year ago, the federal Energy Information Administration said in its weekly survey of service stations.

The fuel price hit a record $4.11 in early July and has fallen steadily since the price of crude oil started its sharp decline from a record $147 a barrel last month to $114 on Monday.

The $33 price drop in crude oil means consumers should continue to enjoy tumbling prices at the pump.

Every $1 decline in the price of a barrel of oil shaves about 2.4 cents off the price for a gallon of gasoline. That means gasoline should fall about 79 cents from its peak if refiners pass all their savings from lower oil costs to consumers at the pump, according to the EIA.

However, the national price for gasoline has so far declined only 30 cents.

In the EIA's weekly survey, gasoline was the most expensive on the West Coast at $4.06 a gallon, down 8.3 cents. The West Coast was the only region of the country where gasoline remained above $4. San Francisco had the highest big city price at $4.18, down 7.9 cents.

The Gulf Coast had the lowest regional price at $3.69 a gallon, down 8.1 cents. Houston had the lowest pump price, down 9.4 cents at

$3.63.

The EIA also reported gasoline prices were down 11.2 cents at $4.11 in Los Angeles, down 10.2 cents at $4.01 in Seattle, down 1.8 cents at $4 in Chicago, down 6.4 cents at $3.92 in Miami, down 9.6 cents at $3.89 in New York City, down 3.7 cents at $3.86 in Denver and down 4.1 cents at $3.68 in Cleveland.

Separately, the average price for diesel fuel dropped 15 cents to $4.35 a gallon, the lowest since May 12 but up $1.51 from a year ago, the EIA said.

The New England states had the most expensive diesel at $4.58 a gallon, down 15.1 cents. The Midwest had the cheapest fuel at $4.27, down 15.2 cents.

(Reporting by Tom Doggett; Editing by Marguerita Choy)