Oil prices dipping below $40 a barrel in trading. The lower crude prices are translating to good news at the gas pump.

FOX News' Tom Graham explains:

How low can they go? Gas prices continue to fall... The nationwide average for a gallon of regular now going for about $2.05.

Triple-A says that's about $0.70 cheaper than this time last year. The South is seeing the lowest price at the pump, the Alabama state average is about $1.85. South Carolina gas is averaging the lowest in the nation at $1.83.

Meantime, California drivers are paying the most in the lower 48... A gallon of regular in the golden state average about $2.69.

Tom Graham, FOX News.