Gary Sumner is thrilled to see gasoline prices dropping nationwide, and they fell again Monday in most places. Even so, he's not hitting the road this winter for any big Christmas trips.
Like many Americans, last spring's soaring gas prices taught him a few things about being thrifty, and with the nation's economy in a deep recession, he is still consolidating errands, watching his gas gauge and rethinking travel plans.
The price of regular self-service gasoline fell 0.6 cents to a national average of $1.653 a gallon over the last week -- the lowest level since 2004, according to the Energy Department's weekly survey of filling stations Monday. California's average price rose for the first time in 26 weeks to $1.806.
But drivers remain cautious. Americans are on pace to record their fewest holiday mile totals in several years, according to AAA, the auto club. And economists say U.S. drivers are likely to remain reserved in their driving habits in the months ahead.
"Originally, the reduction in driving was a consequence of the increased cost of gasoline" this year, said Michael Sivak, a research professor and head of the University of Michigan's Transportation Research Institute's Human Factors Division. "Now, it is the general economic situation that is the likely cause of the continuing decrease in driving."
Sumner, who lives in the gold-mining country of Nevada City northeast of Sacramento, is retired, living on a fixed income and feeling that pain as acutely as anyone. The last time he summoned the nerve to look, his individual retirement account had lost about $100,000. Sumner said he was living through the worst economic conditions he had ever seen in his life.
"Unfortunately, a lot of my money was in stocks," he said. "Hopefully, I'll be able to hang around long enough to recover most of what I lost. That will have to happen before I start driving a lot again."
The economy again damped energy markets Monday, sending crude oil futures for February delivery down $2.45, or nearly 6%, to $39.91 a barrel on the New York Mercantile Exchange. Oil futures have plunged 70% since climbing above $147 in July.
California's average at the pump rose 6.8 cents to $1.806 a gallon as the state's energy commission reported a sharp drop in refinery production. It was the first price increase in the state since hitting an all-time high of $4.588 in June.
