The price of gas has fallen by approximately seven cents over the last 3 weeks

It has been revealed that the price of gas has fallen by around seven cents per gallon over the last three weeks in news that is hoped will help boost the economy and ease the burden many people are facing in these tough economic times.

A survey conducted by Lundberg has found that the national average price of a gallon of gas is $3.41, which is a welcome drop; however, experts are not sure if the three-month decline in gas prices will continue.

Average gas prices this time 12 months ago were $3.62 per gallon and the survey, which was based on 2,500 gas stations, shows that this is the sixth straight decline and represent a drop of 14% since the record high experienced in July 2008, when the price per gallon was $4.11.

Speaking about the results, Trilby Lundberg said: “The retail price may well have bottomed out.  Crude oil prices turned around during the period, and we are in our seasonal period of higher consumption. Lower prices are also an incentive for consumers to drive more, including to work.”

With the US dollar rising to a two-ear high against the euro, other factors could come in to play that will determine which way the gas prices go.  There is a trend that demonstrates that a rising dollar often means that commodities such as dollar-dominated oil fall.  There is also the uncertainty around the Strait of Hormuz, which Iran is threatening to close.  Should this happen, it would impact on the 40% of global-borne oil exports that use that waterway.