According to Kicking Tires, "The lag between the cost of oil dropping and gas prices doing likewise seems to be shortening." The national unleaded average fell to $4.05 today, down slightly from yesterday and even more from a month ago. The highest average price so far is $4.11, recorded last Thursday, July 17.

 

The Los Angeles Times attributes the recent drop to lower demand, but says prices could still fluctuate due to worries "that Tropical Storm Dolly could become a hurricane that might threaten the Gulf of Mexico." The Times further notes that prices "fell everywhere except the Rocky Mountain states, where the average edged less than a penny higher to $4.105 a gallon." The Chicago Sun-Times cites an oil industry report, noting, "The gas-price scare has prompted the largest decline in fuel consumption in the United States in 17 years."

So, have gas prices finally peaked? That's still up for debate, especially when you consider that we were paying a national average of just $2.96 this time last year. The Sun-Times is optimistic, commenting: "Drivers could see gasoline prices below $4 by Labor Day, and even a nickel decline within days" -- but their initial optimism is tempered with a warning from John Kilduff, an energy analyst with MF Global: "One hitch: If everyone jumps back into their cars like nothing happened, the surge in demand will boost gas prices again," the Sun-Times concludes.