TAMPA, Fla. (Nov. 4, 2012) -- While one might expect gas prices to increase after a storm like Hurricane Sandy makes landfall, the opposite has occurred. Instead, gas prices continue to fall in many states, including the Southeast.

The devastation left by Sandy caused demand to drop in the Mid-Atlantic and Northeast region, an area that is not a big production hub. U.S. oil supplies are expected to increase again this week as fewer people travel to and from work and many areas are without power.

As the U.S. handles the aftermath of Sandy, European leaders still struggle with the debt crisis that recently bolstered the value of the dollar, which helped push oil prices lower.

"The good news is gas prices are forecast to continue their downward trend into the holiday season, however Sandy's aftermath has left many Americans without power and the need for fuel," said Jessica Brady, AAA spokeswoman, The Auto Club Group. "Gas prices in the Southeast fell an average of 10 cents from last week, causing each state but Florida to drop below year-ago levels.

A barrel of oil settled Friday at $84.86 on the New York Mercantile Exchange--$1.42 less than the week prior.

The national average price of regular unleaded gasoline is $3.48, 7 cents less than last week. Florida’s average of $3.43 dropped 9 cents from last week, while Tennessee’s average of $3.24 dropped 8 cents. Georgia’s average price of $3.30 decreased 11 cents from last week, respectively. Visit AAA’s Daily Fuel Gauge Report to find national, state, and local metro market retail gasoline prices.

Current and past gas price averages: National:

Current-$3475

Last week-$3.548

Last month-$3.789

Last year-$3.420

Florida:

Current-$3.430

Last week-$3.521

Last month-$3.682

Last year-$3.400

Georgia:

Current-$3.303

Last week-$3.410

Last month-$3.585

Last year-$3.337

Tennessee:

Current-$3.239

Last week-$3.321

Last month-$3.528

Last year-$3.246