Pump Prices Jump Over a Dime as Holiday Weekend Begins

Phoenix, Ariz., May 22, 2008 – Motorists heading out of town for Memorial Day weekend are going to pay more than they ever have at the pump. However, it is advisable for them to fill up before leaving town. That is because Arizona continues to hold on to the nation’s lowest fuel price, despite a nearly 12 cent increase from last week and a current average of $3.649 per gallon. Tucson drivers hold on to the state’s lowest fuel price at $3.543 per gallon, while Flagstaff drivers continue to pay the most to fill their tanks at $3.743 per gallon. Nationwide, the current average for a gallon of gasoline is $3.831 per gallon, an increase of over seven cents from last week.  

The upcoming Memorial Day holiday marks the start of the summer driving season and historically, prices tend to level off after the three-day weekend. However, that will not likely be the case this year as the price of crude oil continues to surge to new highs. In fact, the price of crude oil has risen from $101.54 on March 31 to over $130 per gallon today.

Arizona motorists are currently paying 54 cents more per gallon for fuel than they were last Memorial Day and more than double what they were paying just five years ago. To illustrate this trend, below is a list of statewide fuel averages for Memorial Day weekend for the past five years:

Memorial Day 2003:                 $1.680 per gallon
Memorial Day 2004:                 $2.152 per gallon
Memorial Day 2005:                 $2.283 per gallon
Memorial Day 2006:                 $3.066 per gallon
Memorial Day 2007:                 $3.112 per gallon

Memorial Day 2008:                 $3.649 per gallon

“Crude oil used to make up about 64 percent of a gallon of gasoline. However, in recent weeks, this has increased  dramatically to currently about 75 percent,” said Linda Gorman, public affairs manager for AAA Arizona. “This illustrates that oil companies—not refiners and retailers—are the ones truly profiting from these continued high prices. Oil companies have testified to Congress that they are investing these profits in production in order to meet demand. However, inventories of gasoline in the United States are estimated to be at a 10-year high. This further proves that crude prices are being fueled by investors as opposed to the dynamics of supply and demand.”

The cheapest gasoline in the continental United States is in Arizona, where unleaded regular is $3.649 per gallon. Connecticut drivers continue to pay the most for fuel in the country at $4.083 per gallon. Motorists can visit www.AAAAZ.com/news/fuelnews.htm 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.