Iowa motorists might be noticing they have a little more pocket change lately as gasoline prices have been steadily falling in recent days.

Meredith Mitts, spokeswoman for AAA-Iowa, says pump prices peaked in mid-June and have dropped considerably since then. “The state average is $4.06, which is down two cents from yesterday,” Mitts says. “It is down about 25 cents from a week ago and down almost 60 cents from a month ago.”

The current national average price for gas is $4.32 a gallon, which is 26 cents higher than in Iowa. Mitts explains why prices are spiraling — both in the state and nation — and will likely continue falling for a while.

“The steady decline is due to a low domestic demand for gasoline,” Mitts says, “and then the oil prices have also declined and are remaining at the mid $90 per barrel.” After hitting an all-time state high of $4.76 a gallon on June 15th, pump prices have been in a free fall.

“There is reason to be cautiously optimistic that pump prices will continue to fall, especially if the global price for oil doesn’t spike,” Mitts says, “but overall, the situation still remains very volatile and could change any day.” While the statewide average is $4.06, AA-A says the most expensive gas in Iowa is in Council Bluffs at $4.27 a gallon, while it’s the cheapest in the Quad Cities at $3.88.

(Reporting by Pat Powers, KQWC, Webster City)