Drivers in 48 States Paying More Than Arizonans for Fuel

Phoenix, Ariz., May 1, 2008 – Across the state and country, pump prices are continuing to reach new highs for the 11th straight week. Currently, Arizonans are paying the second lowest for fuel in the country, led only by Wyoming. The current statewide average is $3.445 per gallon, an increase of 4.5 cents from last week. Peoria drivers have reclaimed the state’s lowest fuel price at $3.378 per gallon, while Flagstaff drivers continue to pay the most to fill their tanks at $3.580 per gallon. Nationwide, the current average for a gallon of regular unleaded gasoline is $3.623 per gallon, an increase of nine cents from last week.

Crude oil has continued to underpin record high pump prices. Yesterday’s interest rate cut by the Federal Reserve would generally fuel surging oil prices, as an interest rate cut typically weakens the dollar against foreign currencies. However, because the Fed gave no indication of its future plans and the current benchmark for federal funds rate is sitting at two percent, the greenback gained strength which pushed crude oil to trade in the $110 range.

“While Arizona motorists are still paying record high prices for fuel, we are experiencing a bit of an anomaly as we are paying the second lowest fuel price in the nation,” said Linda Gorman, public affairs manager for AAA Arizona. “However, the market continues to be extremely volatile, and with more expensive summer blends and holiday travel right around the corner, it’s uncertain whether this trend will continue.”

The cheapest gasoline in the continental United States is in Wyoming, where unleaded regular is $3.432 per gallon. California drivers continue to pay the most for fuel in the country at $3.924 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.