I've paid around $4.50 a gallon before in Michigan back in '06 or '07. I just paid about $ 3.05 a gallon here in El Paso, but we have the highest gas prices in the state. El Paso's gas prices have actually been the highest in the state for the two years I've lived here, I have to assume it's because of local taxes.
Obviously, the reason gas is cheap is because Bush and Cheney aren't able to inflate the price of oil like they did for the 8 years they were in office.
Like Drolefille said it's all supply and demand, I know a lot of people are cutting back on things and unnecessary driving is one of the things I've cut down.