The average price of a gallon of regular gasoline in Honolulu dropped below $4 yesterday for the first time since May, giving O'ahu drivers a welcomed break from rising prices.

"Pretty good for a change, huh?" said Catherine Lilly of Kahala.

Lilly remembered the days just three years ago when it cost her only $18 to fill up her 1999 Buick Century.

Like other Honolulu drivers, Lilly saw the cost for a tank of gas soar to $53, then drop this week to $43 at Lex Brodie's in Kaka'ako.

While drivers like Lilly can celebrate the extra cash in their wallets, they still pay more than 50 cents extra for a gallon of regular gas than the national average.

Gas prices fell from an average of $4.022 per gallon Tuesday in Honolulu to $3.995 yesterday — the first sub-$4 price since May 30.

But the U.S. average also dropped from $3.480 to $3.447 yesterday, according to AAA's Fuel Gauge Report.

"Too expensive for gas still," said Lynn Victorino, who put only $10 of regular into her 1990 Nissan truck.

"We still pay too much," said Rio Tafai, who shelled out $84 to fill up his 2002 Dodge Ram truck with 21.1 gallons of regular.

"It's a gas guzzler," said his passenger, Colleen Lang. "But we gotta have it for the kids."

Across the Islands, the overall statewide drop was barely noticeable — falling from an average of $4.146 per gallon on Tuesday to $4.126 yesterday.

Wailuku continued to have the highest measured prices for Hawai'i's metropolitan areas at $4.518 a gallon, according to AAA.

The overall decline in Hawai'i prices coincides with the lowest world oil prices in 10 months.

Yesterday, the price of a barrel of crude oil fell to $88.94, for delivery in November, as the U.S. government reported a bigger-than-expected gain in crude and gasoline inventories and demand has been slowed by the global economic crisis.

Just three months ago, oil prices were running at nearly $150 per barrel.

But, as Hawai'i drivers have learned, fluctuations in worldwide oil prices do not always instantly translate into changes in Island prices as oil is refined and sold as gasoline.

Oil experts have testified before state lawmakers that Hawai'i's prices can fall behind price changes in Mainland and world markets by two or three months — and as local factors come into play, such as Hawai'i's geographic isolation, smaller volumes and lack of Mainland-style competition.

Whatever forces brought about yesterday's fall below the $4-per-gallon threshold in Honolulu, the price change will not affect the increased number of riders who have turned to TheBus over the past several months, said Ken Hong, senior vice president/assistant general manager for Oahu Transit Services, which operates TheBus.

"It won't make a dent in our ridership," Hong said. "TheBus, at $40 per month, is still way cheaper compared to the monthly cost of gasoline, plus parking."

The bigger issue that could directly cut bus ridership would be a larger, overall improvement in the economy, which would boost individual spending, Hong said.

"If the economy is really robust," he said, "that would have an impact on our ridership."

The same theory holds for Hawai'i's struggling new car dealers, who expect to have their worst sales year since 1998.

Falling gas prices alone cannot persuade hoards of customers to buy new cars and trucks at a time when the local and national economies are struggling, said Dave Rolf, executive director of the Hawaii Automobile Dealers Association.

So manufacturers — especially truck-makers — are offering zero interest loans and discounts totalling thousands of dollars to entice buyers. At the same time, Rolf said, showrooms have about 100 car models that get more than 30 mpg.

"The discounts, rebates, lower gas costs and a lot of products with high mileage will bring some people back into the market," Rolf said. "We have some very positive things happening and one very difficult issue: That's the credit crunch. You've got to get the credit thing settled down. Then everything will work out."

While larger, economic forces continue to evolve, drivers such as Sheila Cruz were just happy with the relief at the pump.

"It's about time," she said.

Because of high fuel costs, Cruz has been driving a Volvo wagon while parking her Chevrolet Silverado truck — the one with the thirsty, V-8 engine.

But with fuel prices falling in Honolulu, Cruz said, "now I'm going to pull out the V-8."