Gas drops 2 cents to $2.22

Gasoline prices are falling across the country with 46 states and the District of Columbia posting prices below $2.50 a gallon.

The average price of unleaded regular gas dropped 2 cents to $2.220 a gallon, from $2.240 the day before, according to a survey released Tuesday by motorist group AAA.

The last time gas was this low was Feb. 12, 2007 at $2.2158 a gallon.

Gas has fallen 55 straight days, since just after Hurricanes Gustav and Ike battered the Gulf coast in September.

Prices have dropped 46.04%, or $1.894, from their record high of $4.114 a gallon set July 17, according to AAA. The average price per gallon dropped below $3 on Oct. 18, the first time in nearly nine months.

Gas has dropped by 88 cents from this time a year ago, a decrease of 28.41%. In the past month, prices have dropped more than a dollar, $1.027 a gallon, for a decrease of 31.62%.

Even as gas prices fall, demand for gasoline has continued to slip. MasterCard's weekly survey of gas station credit card swipes showed demand down 3.9% last week, compared to the same period last year.

By state, Alaska reported the highest average gas prices, $3.361 per gallon, while Missouri boasted the cheapest, at $1.915 a gallon, according to AAA.

In addition to Missouri, Indiana and Oklahoma and Ohio reported prices below $2 per gallon.

Crude prices, which make up roughly half of gasoline prices, have fallen nearly 60% since hitting $147.27 a barrel on July 11. U.S. crude for December delivery rose $1.37 to $62.41 a barrel in New York trading on Tuesday.

The AAA figures are state-wide averages based on credit card swipes at up to 100,000 service stations across the nation. Many drivers have reported even lower prices across the country.