[media-credit name=’JEFF SCHORFHEIDE/Herald photo’ align=’alignnone’ width=’648′][/media-credit]

Some drivers in Madison had a pleasant surprise Tuesday morning when the price of a gallon of gasoline dropped below the $3 mark at certain stations.

“It has definitely made it better with driving to work,” Erin Palmer, University of Wisconsin junior, said of the price drop.

Several gas stations in the greater Madison area, including a Citgo in Middleton, are charging as little as $2.97 for a gallon of unleaded gasoline.

The reason for the drop in price is a case of supply and demand, according to Larry Kamholz, spokesperson for the American Automobile Association.

“High supply and low demand equates to low gas prices,” Kamholz said.

Feeling the pinch of a slowing economy, Americans are cutting back on unnecessary spending, such as travel, leading to a greatly decreased demand for gasoline.

UW students with cars are also cutting back on their driving.

“I don’t make unnecessary rides,” said Emily Smolarek, UW junior, because of higher prices when filling up her 1998 Cadillac sedan. Smolarek also mentioned carpooling with her friends to save money.

At the same time, Kamholz said the supply of gasoline to the U.S. and the rest of the world remains “pretty healthy.” This causes gas prices to drop because oil producers need to sell the excess supply.

Average prices in Madison have fallen more than 20 percent from a record high of $4.08 on July 16, according to the AAA Fuel Gauge Report. Average prices are now at $3.17, which is still one cent higher than the national average.

However, not all gas stations in Madison have dropped their prices below $3. Some stations are still charging as high as $3.49 for a gallon of gas, according to Madisongasprices.com.

“Each gas station, depending on who they are, negotiates gas prices differently,” Kamholz said.

Where the gas comes from also has a huge effect on the price of gas at each station.

Some stations receive their gas from Chicago via a substation in McFarland. They pay higher prices for that gas because of a huge demand for gasoline in the Chicago market.

Other stations receiving cheaper gas from Minnesota pass the savings on to consumers.

Even with the drop in prices, some drivers are willing to go the extra mile to take advantage of the different prices.

“I would drive an extra 10 minutes to save money on gas,” Palmer said, when she needs to fill up her 2000 Honda Civic.

As to where gas prices will go in the future, even the experts are unsure.

“There’s no way for us to predict where the prices are going to go,” Kamholz said.

He added anything from a war to a natural disaster could cause gas prices to shoot back up.

Despite this possibility, gas buyers still have reason to be optimistic.

“With nothing going on in the world, we anticipate that we will continue to see prices drop,” Kamholz said.