Hawai'i's statewide weekly gasoline price has dropped for the first time in four months, providing a bit of relief for local motorists.

AAA Hawaii's Daily Fuel Gauge Report shows the average price for a gallon of regular dropped by 6.6 cents statewide in the week ended Thursday to $3.226.

"Pricing may finally be starting to reflect reality," said Richard Velazquez, AAA Hawaii regional manager, noting the price decline was the first in 17 weeks.

"Nationwide and in Hawai'i, demand has been flat while supplies have been more than sufficient."

Velazquez said it's unknown if the drop is the beginning of a longer decline, but the next few days should tell.

"We'll know if this is the beginning of a downward trend similar to what most other states have been experiencing."

Prices dropped during the week in Honolulu, Hilo and to a lesser extent in Wailuku.

Honolulu's average price fell to $3.131, or 7 cents lower than a week earlier.

Hilo experienced the biggest drop of any market measured by AAA Hawaii. It was down 12.6 cents a gallon to $3.233.

Wailuku's gasoline prices fell 1.6 cents to $3.582.

Hawai'i's prices remained the highest in the nation by far, even with the price decline. The only other state with prices averaging over $3 a gallon was Alaska, where regular was $3.065.

The average price nationally was $2.481.

That was down 8.4 cents from a week earlier.

Prices reported by AAA are derived from credit card data taken from fleet vehicle purchases at 85,000 stations nationwide. The organization does not have transaction data for Kaua'i.

This week's drop was a welcome reprieve from what has been a "terrible" summer for taxi driver Song Chang.

"All summer, the prices kept going up by 10 cents," he said. "Every time it went up, I lost money."

Song said he fills up his tank at least twice a day. During the worst of the summer price increases, he said he lost at least $10 a day.

"Business has been slow because the swine flu kept the Japanese tourists away," he said. "Plus, it's summer so I have to keep the air conditioning on all the time for the passengers. All of it costs money."

Chang, 49, found savings at the Aloha gas station on Vineyard, where prices dipped to $3.02 for regular unleaded.

The prices were even better at the Chevron on King and Pi'ikoi Streets, where regular unleaded sold for $2.98 per gallon.

"It's great for us because prices have been going up all summer, especially in town," said Anthony Lee, 56, of Kuli'ou'ou. "This is the first time it's been under $3."

Francine Weber, 45, of Waimanalo, pulled into the station after spotting the sub-$3 rate during a rare drive into town. Weber said she and her husband, who commutes to and from Halawa each day for work, have been curtailing their driving as much as possible since she's been unemployed.

"I'm hoping it will last," Weber said of the price decrease. "It's been a tough economic year. Even electricity is up."

Cliff Troy, 52, found the prices at the 76 station on Ke'eaumoku and Beretania ($3.05 per gallon of regular unleaded) surprisingly close to those in his native Oxnard, Calif.

"It's cheaper than I thought," said Troy, who visits Hawai'i once or twice a year. "The gap is usually bigger. I'm afraid it's just an anomaly, though. I think prices are going to continue to be a problem."

At the Shell station on North King Street, prices dropped three cents from last week, down to $3.18 per gallon for regular unleaded. That was enough to elicit a "hell, yeah!" from Ala Cummings of Kalihi, who stopped at the station with her husband, Jonah, and their son en route to a weekend camp-out in Nanakuli.

"Every little bit helps right now," Cummings said. "I can fill up my Honda for a twenty. That's not bad."