Video: Gas prices drop

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SEATTLE – Prices keep falling at the gas pumps. Now consumers want to know when it will start translating into lower prices for other things such as groceries.

Several stations in Western Washington have dropped below $3 a gallon – the price that was dreaded for so long before $4 a gallon became a reality this past summer.

According to AAA, the average price in Washington hit a peak in July at $4.25 a gallon for regular. On Monday, that fell to $3.40, but it’s still higher than the $2.97 everyone was paying a year ago.

Still, the drop in prices is offering drivers a break many had not been expecting.

"Every little thing helps with the economy going out so I'm very pleased,” said driver Jennie Chiang.

When the cost of gas skyrocketed, the price of many other of life's necessities went up as well. Now some economists are optimistic that the same trickle down effect will happen in this direction as well. Some say it may just be a few weeks before we notice prices dropping at the grocery store.

"I'd expect to see groceries in general getting less expensive. These items have a fairly high transport cost per dollar that you see on the shelves. So as transport costs come down, you'd expect to see groceries on the shelf, all of them, get at least somewhat less expensive,” said economics professor Chris Weber.

And even though fuel is getting cheaper, gas station managers and state transportation officials agree there’s no real indication that drivers will return to their old gas-guzzling ways.

“I would love to, but I can't. You know, we just can't afford to do that anymore,” said one driver

Washington state officials say even with gas prices dropping the past few months, people drove less last month than they did in September 2007.

Oil prices reached a record of $147 a barrel over the summer, but as the economy has fallen on hard times, so has worldwide demand and prices along with them. Prices on Monday rose $3.49 to close at $81.19 a barrel

NORTHWEST GAS PRICES

Average according to AAA