The price of regular gasoline at the retail outlets in the US dropped below $2 a gallon for the first time in over three years, driven down by the changed habits of the cash-strapped consumers in the wake of a slumping economy and rising unemployment.

Petrol, better known as gasoline in the US, dropped 3.1 cents to $1.989 a gallon, according to American Automobile Association (AAA). Gasoline prices have fallen 52 per cent since their record high of $4.114 per gallon in July 2008.

According to the Federal highway administration, motorists drove less in September for the eleventh consecutive month.

The national average gasoline price dropped to $2.02 per regular gallon, AAA said, and, in 23 states, gasoline is reported to be retailing at less than $2 a gallon, while it is down to $1.72 a gallon in Missouri.

Analysts were reported as saying that the super spike in the price of oil this summer has made people change their behaviour, and it is unlikely that they will adopt their previous driving habits once again, just because the price of gas is now lower.

Though demand is lower than a year ago, the pace of decline has slowed with the prices at the pump falling. Bloomberg reported that the US consumption of gasoline dropped 2.8 per cent last week, marking the smallest decrease in 11 weeks according to a MasterCard report.

Reports also suggested that the sharp and sudden fall in the gasoline prices has failed to give any pointers to observers as to whether demand would go up again this year. Most observers were reported saying that 2009 was the earliest they could wager a guess, with most waiting to see how much exactly demand will jump back with lower prices.

US refiners too have seen margins shaved off gasoline into negative with the slump in demand, since mid October. 

Reports also said that the average price at the pump is 84 cents per gallon higher than the wholesale price paid by retailers, and is 16 cents more than the average this year. 

The basic change in driving behaviour with Americans came about with the super spike in the price of oil this summer, converting most drivers into cost-conscious drivers. Amongst driving behaviour changes, Americans gave up solo commutes in favour of bus and train rides, and cut back on the number of trips to stores and restaurants. The biggest change was a in preference in favour of smaller, more fuel efficient cars, which sent the Big Three auto makers hat-in-hand to Washington asking for a bailout. 

The last time consumers paid less than $2 at the pump was March 2005, when a regular gallon cost an average $1.99, according to AAA data.