Gas prices an upside to economy fears

NEW YORK – Soaring gasoline prices are in the rearview mirror.

For the first time in months, retail gasoline prices have fallen below $3 a gallon in places, including parts of Michigan, Missouri and Texas. And the relief is likely to spread thanks to a sharp decline in crude-oil prices.

The national average for regular unleaded gasoline is $3.51 a gallon, down from a high of $3.98 in early May. Last week’s plunge in oil prices could push the average to $3.25 per gallon by November, analysts say.

Economist Philip Verleger equates it to “a stimulus program for consumers,” leaving them more money for clothes, dinners out and movies. Over a year, a 50 cents-a-gallon drop in gasoline prices would add roughly $70 billion to the U.S. economy.

Arthur De Villar, a 48-year-old safety inspector for the Federal Aviation Administration, paid $2.96 for gasoline near his home in Manchester, Mo., a suburb of St. Louis – and he recently replaced his SUV with a four-door sedan.

With three boys at home ages 11 to 14, the money De Villar saves on