Local News

AAA: Gas prices take biggest one-week plunge in four years

Posted October 25, 2012 12:10 p.m. EDT

— A drop in North Carolina gas prices this week is the sharpest one-week decline since 2008, according to AAA Carolinas.

The auto club said Wednesday that the cost of gasoline dropped 11 cents in the last seven days, hitting an average of $3.58 per gallon.

Gas prices have dropped 27 cents since Sept. 14, when it was $3.85 per gallon, the auto club said. But motorists are still paying 15 cents more now than a year ago, and they’ve been paying more in 2012 so far than in 2011.

Still, the last time prices dropped so much in one week was in late Novemeber 2008, when the cost of a gallon declined by 15 cents.

David Parsons, president and chief executive officer of AAA Carolinas, said the current drop is due to a decline in crude oil prices, worries over a weakening global economy, a decline in demand and a stronger dollar.

“The price drop is great news for drivers,” Parsons said in a statement. “However, the nature of gas pricing today mostly depends upon issues outside of the U.S., like armed conflicts in oil-producing nations, the dollar’s value against the Euro and the demand for oil in developing countries like China, India and Brazil.”

AAA Carolinas predicts gas prices will continue to drop until Thanksgiving. The holiday is marked by heavy travel, which tends to stabilize or increase prices.