GRAND FORKS, N.D. (AP) - Gasoline prices have dropped just below $2 a gallon here, a level not seen since spring last year.

"It's unbelievably inexpensive, especially compared to where I'm from," said Tim Nickerson of Salt Lake City, who was filling up his rental car Thursday night after a day of work as a contractor at Grand Forks Air Force Base. He said he paid $2.68 for gas at home last week.

"It's been a long time since prices were below $2. It's a good thing," said Michael Leach of Thief River Falls, Minn.

The Leach family fills up in Grand Forks once or twice a week because the price is about a dime lower than in their hometown, said Leach's wife, Celeste.

"The gas wars continue on," joked Daniel Ward, the Sam's Club general manager. The station's member price for gas went to one-tenth of a penny below $2 on Monday morning. Other stations followed.

Gasoline prices have been dropping since Aug. 31.

The Energy Information Administration, the department's statistical arm, said domestic inventories of gasoline increased last week to 213.9 million barrels, or 9 percent above last year.

Travel agency AAA put the national average price for unleaded gasoline at $2.33 a gallon, down 49 cents a gallon from a month ago.

Around the world, oil prices dropped Friday in what analysts called a correction after earlier fears of a possible cut in OPEC output.