Sure, $3.48 is still a lot, but psychologically it is much easier to swallow after we got so used to seeing prices moving above the $4 barrier.

Falling oil is the main reason why gasoline has been moving lower, and if oil can continue to trade below $100 a barrel, prices at the pump should continue to drop even further.

I know what you are thinking, $3.50 is still a lot, how much further can we expect to see prices fall? Well, things could get a lot better, really fast, at least according to AAA. One spokesman for the American Automobile Association, Geoff Sundstrom, stated that consumers can expect to see gasoline prices move sharply lower in the next few weeks, and that we could easily be seeing $3.00 gasoline in a couple of weeks. Very encouraging to say the least.

Sundstrom's prediction does make sense. Oil is a major component for gasoline, making up roughly 50% of gasoline's content, so the rapid decline in oil prices should lead to even further reduced prices for us at the pumps.

The economic crisis has been the main reason for oil's pullback as demand has been on the fall. Oil is down about 40% from its highs over the summer, and the U.S. government has lowered its forecasts for oil prices for 2008. The new estimate for the benchmark for oil is $112 a barrel in 2008, down 3.3% from its previous estimate of $115.81.

In its report, it estimated that the average price per gallon of gasoline in 2008 will be $3.51 a barrel, this is significantly higher than the $2.81 average for a gallon during 2007. This will, of course, depend on just how low prices move, and remain, for the rest of the year, but if the average does hold at $3.51 for the year, we are talking about a 25% jump this year. Let's just be glad that prices are starting to move lower.

In North Carolina, where I live, prices are not moving down as fast, and in fact there are many places here where you can't even buy gasoline anymore, as a gasoline shortage has hit the area pretty hard. They are blaming the shortage on refinery shutdowns during the recent hurricanes, and promising that relief is on the way. Regardless, it is not a good feeling to pull into the gas station down the street and see the "we have no gas" sign on the pumps.

What about where you live? Are you seeing prices down around the $3.50 mark? Let us hear from you, tell us where you are from and what sort of prices you are seeing when you pull in to fill up your tanks.