gas prices drop to 8-week low

    By Tom Doggett, Reuters
WASHINGTON ¡ª Gasoline prices fell to their lowest level in eight weeks, the Energy Department said Monday, as cheaper crude oil costs pushed pump prices lower.
The national price for regular unleaded gasoline dropped to $2.60 per gallon, which was still up 94 cents from a year ago, the department's Energy Information Administration said in its weekly survey of service stations.

The latest lower motor fuel price reflects the drop in crude oil prices, which account for about half the cost for making gasoline.

The price of U.S. crude oil settled at $69.51 a barrel in Monday trading at the New York Mercantile Exchange, the lowest settlement price since Sept. 29, on market concerns about weak oil demand and strong petroleum inventories.

In its weekly price survey, the EIA found the West Coast had the most expensive gasoline at $2.85 a gallon, down 1.3 cents. By city, Los Angeles had the highest price at $2.95, down 1.7 cents.

The Gulf Coast states had the lowest regional price at $2.47 a gallon, down 4.4 cents. Houston had the cheapest city pump price at $2.38, down 7 cents.

The agency also said gasoline prices were down 1.9 cents at $2.79 in Seattle; down 2.6 cents at $2.72 in Miami; down 1.8 cents at $2.67 in Chicago; down 1.9 cents at $2.66 in New York; down 1.7 cent at $2.59 in Boston; down 3.8 cents at $2.53 in Cleveland and down 1.4 cents at $2.46 in Denver.

Separately, the average price for diesel fuel fell 2.4 cents to $2.75 a gallon, 33 cents higher than a year ago, the EIA said.

The New England region had the most expensive diesel at $2.87 a gallon, down 0.4 cent. The Gulf Coast region had the cheapest diesel fuel at $2.70, down 2.7 cents.