In case you haven't noticed, pump prices have been falling at convenience stores and fuel stops all across the Valley, a surprising trend at a time when consumer prices are skyrocketing for just about everything from insurance to ice cream. Analysts say that decreased demand for gasoline is the reason for lower gas prices, driven by the economic crisis. For example, as consumers worry about their investments and have less confidence in a stable marketplace, they have cut back on excessive or unnecessary spending, including the amount of fuel used in the family vehicle. And as the demand for fuel falls, so do wholesale crude oil prices. In mid-July, a barrel of crude oil cost $147. Today, it's down to about $70 a barrel. That's a healthy 50% drop in wholesale prices. AAA (Triple A) Texas in Austin is reporting the statewide average for a gallon of regular unleaded gasoline fell 27 cents to $2.59 a gallon this week. The nationwide average fell 20 cents to $2.63 a gallon, but in isolated communities across Texas prices for regular unleaded fuel is selling for as low as $1.98 a gallon. The lowest price for gasoline in the nation, in fact, can be found right here in the Valley, at the Stripes location at 620 W. Harrison in Harlingen. Two other Stripes locations in Harlingen have matched that price, while most fuel stops across Harlingen as selling fuel for $2.02 a gallon.  In Port Isabel and South Padre Island, the lowest fuel  Wednesday afternoon was at White Sands, where unleaded regular was selling for $2.24 a gallon. Stations across Port Isabel and the Island average around $2.39 a gallon for unleaded fuel. Stations in Brownsville, Mid-Valley and McAllen, like Harlingen, were selling fuel hovering around the $2.10 level. But why the disparity between prices on the coast and in other parts of the Valley? Or as far as that goes, the prices in the Valley compared to other places across Texas? Triple A's Dan Ronan says proximity to production and storage facilities has a lot to do with it.  “When fuel companies have to transport fuel great distances, there is the added cost of delivery. But in Texas, trucks don't have to roll that far to get fuel to the retailers, keeping the costs, and wholesale prices, lower,” he reports. But if that's true, then why is fuel less expensive in the Valley compared to Houston, a hub for the gasoline refinery industry? “There's a lot of intricate economics at work there,” admitted Ronan. “And many factors that are added in that determines the final wholesale price to the retailer, who then sets his price based upon what he has to pay for the fuel.” That still wouldn't explain why fuel in Harlingen is selling for $2 a gallon and in Port Isabel the pump price hovers around $2.45-$2.50. And no one seems to have a good answer. One retailer we talked to Wednesday, who asked to remain anonymous, says he suspects there is a degree of competition between wholesalers. Prices in Harlingen may be less because a wholesale distributor may be in a gas war with another wholesale distributor, a similar situation to the gas war prices of the 70's between retailers. “They probably figure they can roll a few hundred trucks to Harlingen, offload it all in a day, and drop the price to a point that other wholesalers will feel the squeeze. They couldn't do that when wholesale prices were at a premium. But now that crude prices are down, they have more leeway in what they can wholesale for,” he said. Bill Day with Valero Energy in San Antonio agrees. Valero is not only a wholesaler and operates retail stores throughout Texas, they also are a refiner of gasoline with plants in and near Houston. “We're seeing a greater competitive market at every level of the energy business right now, spurred by the incredible drop in crude oil prices. This allows for more competitive and frequent prices changes at the pump,” he reports. But don't expect gas prices to stay low for long. Day and others speculate wholesale crude prices will slowly edge back up in the coming weeks and months, meaning higher refinery prices and much higher retail prices as well. No one is speculating how long lower price fuel will last., or if the price has reached the bottom. But merchants and store owners across the Port Isabel and South Padre Island hope the lower prices last at least through the holidays to help spawn more travelers wanting to return to the beach and more winter visitors to flood the area.