Triple-A Texas spokesperson Sarah Schimmer says gas prices are dropping because demand is flat.
She says prices could continue to fall before the end of this year.
The statewide average dropped three-cents to three-dollars-nine-cents a gallon. The national average is also down three-cents to $3.23 a gallon.
El Paso has the lowest average at $2.97, while Austin, Amarillo and Texarkana have the highest average at $3.09 a gallon.
Both Houston's and Galveston's average is at $3.07 a gallon, down three cents this week.
San Antonio drivers are also paying two-cents less at $3.04 a gallon.
Dallas motorists are paying four-cents less this week at $3.07 a gallon.