HOUSTON — Oil and gas prices have been falling during these past few days and some drivers in our area are already benefiting from the drop.

“I thought it was just going to keep up until I have to buy a bicycle and start riding to work,” driver Zach Streng said.

But it looks like he won’t have to do that.

At a gas station off I-10 and Thompson Road in Baytown, the price of regular unleaded is selling for $2.87 a gallon.

That caused a gas war with the competitor across the street.

Management there dropped the price of unleaded gas to $2.85 in order to compete.

Right now, the average price of regular unleaded gasoline in Houston is $3.27 a gallon.

It was $3.31 yesterday and $3.42 one month ago.

But what factors determine how much you pay for gas?

“Crude oil prices do set the price of gasoline,” Oil Market Analyst Alan Lammey said.

Analysts say the price depends not just on when gas stations buy it, but how much it cost them.

“When they put that order in on any particular day the price of oil, which sets the cost of gasoline, can be anywhere,” she said.

Location is also another important factor.

“You’re going to be paying a premium because the cost of that real estate is far higher.  Their rent, their lease, what they pay on those buildings, maintenance, is going to be higher than what they may pay in another area of town,” Lammey said.

The owner of one Humble gas station knows drivers feel the pinch, so he’s keeping prices low. Thirty-five cents lower than nearby gas stations.

”We tried to help the community.  And, you know, the economy is very hard. So we try to help the community by reducing our profit margin,” gas station owner Mike Hussain said.

And that has many drivers like Rose Jennings smiling.

“I think it’s remarkable.  I always look for cheaper gas to begin with,” Jennings said.

Still unknown is what’s to come.

Analysts say with so much uncertainty, by this time next week, the price of a barrel of oil could drop $20 or rise another $30.

All of us will feel the impact.