Gas Supplies at 14-Year High, Lower Pump Prices Likely Ahead

Phoenix, Ariz., February 7, 2008 – Across the state and country, motorists are starting to see fuel prices stabilize. Statewide, the current average for a gallon of regular unleaded gasoline remains relatively unchanged from last week at $2.883 per gallon. Peoria drivers continue to hold on to the state’s lowest fuel price at $2.802 per gallon, while Flagstaff drivers continue to pay the most for fuel at $3.065 per gallon. The national average is currently $2.972 per gallon, a drop of over a penny from last week.

This week, the Department of Energy reported additional gains in fuel supplies, which put gasoline inventories at a 14-year high. This surge in inventories is in large part due to a slowing economy that has resulted in suppressed demand for fuel over the last two months.  

“Higher than normal fuel prices, coupled with the threat of a recession are forcing motorists to conserve fuel, which is a big  reason we are seeing a surge in supplies right now,” said Linda Gorman, public affairs manager for AAA Arizona. “If this trend continues, it is likely that prices could continue to drop even into the spring, although refining season is just around the corner. However, should a disruption in supply occur during maintenance season, prices could start their usual seasonal climb.”” 

The cheapest gasoline in the continental U.S. is in Missouri, where unleaded regular is $2.797 per gallon. New Yorkers continue to pay the most for gasoline in the country at $3.240 per gallon. Motorists can visit www.AAAAZ.com/news for the latest fuel price information and gas saving tips and go to www.AAA.com/fuelfinder to locate the station with the cheapest gas in their neighborhood or along their commute route.  They can also visit AAA’s Fuel Cost Calculator at www.fuelcostcalculator.com, which can help drivers plan out their fuel costs so they can budget their travel expenses in advance. AAA members who use their AAA Visa credit card can get a rebate of up to five percent on gasoline purchases made at the pump. Members can also flash their AAA membership card to save at over 100 of the auto club’s Show Your Card & Save partners.  

 **The BTU-adjusted price of E-85 is the nationwide average price of E-85 adjusted to reflect the lower energy content as expressed in British Thermal Units - and hence miles per gallon - available in a gallon of E-85 as compared to the same volume of conventional gasoline. The BTU-adjusted price calculated by OPIS and AAA is not an actual retail average price paid by consumers. It is calculated and displayed as part of AAA's Fuel Gauge Report because according to the Energy Information Administration E-85 delivers approximately 25 percent fewer BTUs by volume than conventional gasoline. Because "flexible fuel" vehicles can operate on conventional fuel and E-85, the BTU-adjusted price of E-85 is essential to understanding the cost implications of each fuel choice for consumers.

AAA Arizona’s Weekly Fuel Gauge includes data from gasoline stations in every Arizona community. However, only major metropolitan areas are shown in the table above.  Local prices in some communities might be higher or lower than the averages shown here.

NOTE: AAA Fuel Gauge data may be used on a daily basis by news media Web sites, but should include attribution to AAA.