By Dee-Ann Durbin

Associated Press Writer

Gas prices fell another five cents in the last week, down to an average of $1.17 per gallon statewide, AAA Michigan said Monday.

Prices have been in a free fall since the Sept. 11 terrorist attacks, plummeting 68.9 cents in the past seven weeks, AAA said. Drivers are paying an average of 44.7 cents a gallon less than they were one year ago.

Not everyone is impressed. Rick Schreiber, a salesman for Jasco Chemical Corp., was paying $1.20 per gallon for premium gasoline on Monday at a Shell station in East Lansing.

Schreiber, who drives 50,000 miles per year for his job, said he's seen lower prices in Ohio, Indiana and Kentucky.

``It's higher here and it's even higher up north. I've got a stack of receipts in my truck to prove it,'' said Schreiber, who lives in Ann Arbor. ``It's better than six months ago, but still...''

Others in Michigan say they're thrilled by the lower prices.

``They've been so high for so long. It's a pleasant change,'' said Anita Blasius of the Southeast Michigan Council of Governments, which runs a carpooling program in the Detroit area.

Blasius said she has seen gas as low as $1.06 per gallon. AAA Michigan, which surveys 300 gas stations each week, said prices range from $1.01 to $1.39 per gallon around the state.

The slow economy is one of the main reasons for the drop in prices, according to the Michigan Public Service Commission, which conducts seasonal studies of energy use.

That slowdown was only amplified by the attacks on Sept. 11. The commission predicts gas prices will remain at or near current levels for the next six months.

There also has been a decline in crude oil prices. Mark Griffin, president of the Michigan Petroleum Association, said this summer's supply shortages caused refineries to pump out gasoline longer than they would have, creating a glut of gasoline in the market.

Griffin said diesel fuel prices remain high because refineries continued to produce gasoline when they normally would have been switched over to diesel and heating oil.

Another reason for the low prices is that demand for gas typically dips between the summer season and Thanksgiving, AAA Michigan spokeswoman Nancy Cain said.

But Cain said demand should definitely pick up in November. AAA expects more Thanksgiving travelers on the road this year, both because of the low gas prices and because the terrorist attacks have made people jittery about air travel.

``Many people are thinking, `Instead of flying somewhere, we'll just drive to grandma's,''' she said.

Gas prices have been a source of contention in Michigan, which saw spikes as high as $5 a gallon in the hours following the terrorist attacks.