Falling gas prices offer slight relief

Gasoline prices continue to fall below $4 in most of the East Valley, and analysts are optimistic the trend will continue because of lower demand and less expensive oil.

For the third consecutive week, the average price of regular-grade gasoline dropped, according to a report issued Thursday by AAA Arizona. Statewide, drivers are paying $4 a gallon, a drop of more than 6 cents from last week.

The last time Arizona motorists experienced a drop in fuel prices of more than a nickel over the course of a week was in August 2007, AAA said.

The lower prices are due to consumers cutting back on fuel as well as falling crude oil prices.

"Looking forward, we do not anticipate the current downturn in prices to reverse in the short term unless there is a major supply disruption," said Linda Gorman, AAA Arizona public affairs manager.

East Valley motorists Thursday paid an average of $3.96 a gallon, a drop of nearly 7 cents from last week. Prices in Scottsdale averaged $4.08 a gallon, 6 cents less than the previous week.

"It's a tease," said Leland McAnlis of Tempe while fueling up a 2004 Dodge Neon at a Circle K on Apache Boulevard. "Watch. They'll raise it again."

In Tempe, the average is $3.95, about 10 cents less than last week.

"It's better, but it could be lower," said Jim Thornbrough, a plumber who drives his motorcycle from his home in Globe to Tempe, where he rents a trailer during the workweek. "If I had to drive my car instead of my motorcycle, it would cost me $300 a month for gas."

Many took the news with little fanfare.

"It's a sad day when we feel good about gas being cheaper than $4 a gallon," said Debbie Eden, of Scottsdale, as she put gas in her GMC Yukon at the Arco station at Scottsdale Road and Shea Boulevard.

But Sandy Baldwin said that "every little penny feels good" as she pumped gas into her silver Laredo 4-by-4 at the Cobblestone station at Osborn and Scottsdale roads.

"I'd love to see it get better than this. Realistically, I don't think we're going to see cheap gas for a long time."

Brian Inman of Queen Creek believes motorists have no control over the price, and the result is confusing.

"There is no one person or political organization or any single group that can give us an answer why gasoline is so expensive," said Inman, who drives a diesel Ford F-250.

Motorists nationally used 2.4 percent less fuel over the past four weeks than they did last year, according to the U.S. Energy Department.

"People are driving less, they're trading their SUVs and they've changed their driving habits," said James Cordier, president of Liberty Trading Group. Crude oil is currently trading in the mid-$120 per barrel range, which is more than $20 below its all-time high prices of $147 per barrel earlier this month.

The Associated Press contributed to this report.