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Cost of gasoline dips due to drop in crude oil prices

By KENDRA BOLLING

BNI News Services

For the first time since February, the national average for gas dropped below $3.50 per gallon.

In Greenville the average cost of a gallon of gasoline, according to AAA, is $3.14. In Georgiana the average cost is $3.15, while travelers pay $3.12 a gallon in McKenzie

That’s down nearly 4 cents from last week and nearly 30 cents from last month.

Gas is nearly 30 cents less than it was in June 2011.

“Crude oil prices are dropping, due in part, to economic issues in other parts of the world,” said AAA spokesman Clay Ingram.

“Since crude oil is priced in dollars, the demand goes down when the value of the dollar goes up. So, current global economic situations are putting downward pressure on crude oil prices, which results in lower prices at the pump for all of us, finally.”

Ingram said that crude oil has been over-priced for all of 2012, but that things are finally setting down in the investment world, which also helps to push prices downward.

On Thursday, the price of West Texas intermediate crude oil dropped $3.60 cents to $78.20 per barrel.

“We should see prices continue to decline in the coming week and could see bigger drops during the fall,” Ingram said.