WASHINGTON (Reuters) - The average U.S. retail gasoline price fell 26 cents over the last week to $2.66 a gallon, the cheapest pump price since March 2007, the Energy Department said on Monday.
The national price for regular unleaded gasoline is down 22 cents from a year ago, the department’s Energy Information Administration said in its weekly survey of service stations.
Falling crude oil prices and dropping petroleum demand are pushing down gasoline costs, which have declined 98 cents in the last month and $1.45 from the record high of $4.11 a gallon in July.
The decline in gasoline prices is one of the few bright spots for consumers in the weak economy, giving families extra money to spend on other goods and services.
In addition to cheaper motor fuel, falling crude oil is also lowering heating oil prices, which will save consumers on their heating bills this autumn and winter.
In the EIA’s weekly survey, gasoline was the most expensive on the West Coast at $3.05 at gallon, down 23 cents. San Francisco had the highest city price at $3.27, down 22 cents.
The Gulf Coast had the lowest regional price at $2.46 a gallon, down 27 cents. Houston had the lowest city pump price, down 35 cents to $2.41.
Separately, the average price paid for diesel fuel fell 19 cents to $3.29 a gallon, the lowest since early February, but 13 cents higher than a year earlier, the EIA said.
The New England states again had the most expensive diesel at $3.57 a gallon, down 16 cents. The Gulf Coast had the cheapest diesel at $3.22, down 23 cents.
Reporting by Tom Doggett; Editing by Christian Wiessner