Gas Prices | featured news

Consumers have caught a break from the slowing economy as gasoline prices extended their steep three-month decline, but the cost of filling the tank may soon head back up, a widely followed survey said on Sunday.

Average retail gasoline prices continue to fall in California, but the national average for a gallon of regular fuel rose for the first time in several weeks, according to the AAA Fuel Gauge Report.

Americans can't seem to shake their uneasy feeling about the economy. Consumer confidence fell in June for the fourth straight month as worries about the economy outweighed relief at the gas pump, according to a private research group.

The average price of a gallon of gasoline in the U.S. has dropped 15 cents over the past two weeks.

In April, I predicted that President Obama’s $52 million plan to increase the margin requirements and otherwise tighten the screws on oil speculators — who borrow huge sums to bet on the direction of oil without taking delivery — would cut oil prices by 10%. He’s beaten that prediction and the lowered prices of gasoline has added $78.4 billion to its consumers’ spending power.

The slowing economy could provide a bright spot for consumers: gasoline at $3 a gallon — or less — by autumn.

U.S. retail sales declined in April and May, pulled down by a sharp drop in gas prices. But even after excluding volatile gas sales, consumers barely increased their spending... Americans did spend more in May on big purchases. Sales of cars, furniture and appliances all increased. That suggests consumers may be gaining more confidence in the economy.

The average price for a gallon of regular gasoline in the United States fell 15.9 cents to $3.624 in the past three weeks due to a drop in crude oil, which took a hit from fears over Europe's economy and a stronger dollar, the Lundberg Survey showed. The national average for regular gasoline as of June 8 was down more than 11.62 cents from the year-earlier level of $3.74 a gallon, according to the survey of some 2,500 gasoline stations in the continental United States.

Oil prices plunged as bleak reports on U.S. job growth and manufacturing heightened worries about a slowing global economy. Benchmark oil fell $3.49 to $83.04 per barrel Friday.