West Valley gas prices dropped an average of 10 cents in the last week, and analysts predict the recent decline will continue.
The average price in the West Valley for regular unleaded is $3.81, according to AAA Arizona.
Arizona's average price is $3.83 a gallon, a drop of slightly more than 8 cents from last week. Nationwide, prices dropped 7 cents from last week to settle at $3.84 a gallon on average, AAA said.
Linda Gorman, AAA Arizona public affairs manager, said prices may dip even more in the coming weeks if oil prices continue to fall.
"It is likely that motorists will be in store for even lower fuel prices as the summer nears its end, should oil prices continue to trade lower in the coming weeks," she said.
"The added strength of the dollar is encouraging to the market, as it is helping to reverse the role our currency had in driving up oil prices."
Oil prices peaked July 11 at $147.27 a barrel. On Friday light, sweet crude dropped sharply again, falling $4.82 a barrel to settle at $115.20 on the New York Mercantile Exchange. That brought crude's decline over the past four weeks to more than $30.
"We're probably going to see gasoline at the retail level around $3.50 for Labor Day," said James Cordier, president of Liberty Trading Group.
The steady decline in gasoline prices is not only linked to crude oil prices but to the economic downturn resulting in less driving, which is forcing service stations to ratchet down their retail gas prices, according to the Oil Price Information Service and Wright Express.
The Associated Press contributed to this report.