It happened today.

Unleaded gas prices plunged below $3 per gallon in Duluth. Prices were at around $3.15 per gallon before the big drop to $2.99 per gallon. You can even find some stations at $2.98 per gallon. They include the M&H station on West Michigan, Holiday at 27th Avenue West, Cenex at 13th Avenue East and Fourth Street and Mobile at 12th Avenue East and Fourth St.

Sure, gas prices sliding below the magical $3 mark would have been a nice Christmas present. But we’ll take it for New Year’s.

The big price drop, which also happened around the state, followed a slight price rise last week. And it followed a year when the average price of gas in the country hit an all-time high of $3.60 per gallon, according to GasBuddy.com.

While you can find gas even cheaper in the Twin Cities today, we still have bragging rights. Duluth prices are currently cheaper than Cloquet’s $3.04 to $3.12 per gallon and Two Harbor’s $3.09 to $3.12.

Duluth’s $2.99 per gallon also is less than the Minnesota average of $3.04  per gallon and the national average of $3.26 per gallon.

Prices are projected to continue to fall. But who knows for how long. So fill ‘er up, and enjoy it while it lasts.

Sure you can get some great rates  if you fly Allegiant from Duluth to Orlando or Vegas.

But how much are you paying for the extras? Like baggage, food and in-flight internet?

Collectively, quite a bit, considering that among the world’s top 47 airlines, Allegiant had the biggest percentage of its revenues come from extra fees in 2010, according to a study cited in the Wall Street Journal.

Allegiant Air , the leisure carrier serving Duluth, topped the list with 29 percent of its total revenue coming from extra fees. For every $1 Allegiant gets from ticket sales, it gets another 40 cents from add-on fees.

A few years ago, airlines started charging for services that used to be included in the ticket price to compensate for rising fuel costs. In the last year alone, the cost of jet fuel jumped 37 percent.

Meanwhile, airline revenues jumped last year in large part because of all the tag-on fees, the Journal reported.  You might get a great deal on the ticket price, but the cost of checking luggage on a round-trip flight was typically $50 for the first piece and $70 for the second, according to the Associated Press.

There’s apparently no escape for Duluth air travelers.

When you look at total revenues collected from the extra fees — which can include charges for more leg room, carry-ons, oversized bags, assigned seating, making reservations over the phone, changing tickets, even drinking water — Duluth’s other major carriers, Delta and United (combined with its sister airline, Continental)  are the top two.

You would think suspending flight service between cities like Duluth and leisure destinations like Orlando, for months on end would be enough for Allegiant Air to save on rising jet fuel costs.

Beginning May 2, Allegiant will temporarily suspend its twice-weekly Duluth-Orlando service. And that suspension could last until November. Allegiant is also suspending service to varying degrees to Fargo, N.D.; Appleton, Wis.; Sioux Falls, S.D.; McAllen, Texas; Toledo, Ohio; and Rockford, Ill. (The Duluth-Las Vegas flights are not affected).

Now comes word that Allegiant is seeking another hedge on rising fuel prices: permission to change fares between time of booking and takeoff.

Allegiant made the request to the U.S. Department of Transportation last month. The Wall Street Journal reports that the airline would continue to offer “locked-in” fares that wouldn’t change, but wants the caveat of fluctuating fares within a set limit for its lower fare deals, just in case fuel prices dramatically increase in the meantime.

Jet fuel costs have increased 20 to 30 percent in recent months.