Biggest Weekly Fuel Price Climb in Nearly 16 Weeks

Phoenix, Ariz., February 28, 2008 – Much to motorists’ dismay, pump prices across the state and country continue to ascend for the second straight week. Statewide, the current average for a gallon of regular unleaded gasoline is $3.052 per gallon, an increase of 12 cents from last week and eight cents shy of Arizona’s all-time high fuel price of $3.131 per gallon. In fact, drivers in the state haven’t paid this much for fuel since June 2007, and this is the biggest weekly jump in prices since early November.

Phoenix drivers are paying the state’s lowest fuel price at $2.981 per gallon, while Flagstaff drivers continue to pay the most for fuel at $3.181 per gallon. Aside from Phoenix, the East Valley is the only remaining area in the state to remain below the $3 per gallon mark with an average of $2.987 per gallon. The national average is currently $3.161 per gallon, a jump of over seven cents from last week.

In its weekly inventory report, the Department of Energy reported a seventh consecutive week in growing oil supplies. However, this week crude closed at an all-time high of $100.88 per barrel and traded as high as $102 per barrel. The current separation between healthy inventories and record high prices illustrates that the market is much more complex than supply and demand. Factors such as the ongoing Turkey-Kurdish conflict and speculation that the Organization of the Petroleum Exporting Countries (OPEC) could maintain or reduce output at their meeting next week have both contributed to crude’s recent trajectory.

“In addition to these factors, refineries are in the process of conducting their biannual maintenance in order to produce blends of summer fuel, which historically results in higher pump prices this time of year,” said AAA Public Affairs Manager Linda Gorman. “As we move into warmer months, it is very likely that we will see record breaking gasoline prices, especially considering that our starting point before we head into spring  is 70 cents higher per gallon than it was last year.”  

The cheapest gasoline in the continental U.S. is in New Jersey, where unleaded regular is $2.969 per gallon. California drivers are paying the most for fuel in the country at $3.418 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.