Relentless Pump Prices Surge 16 Cents in Last Week

Phoenix, Ariz., May 29, 2008 – For the 15th consecutive week, the rising price of gasoline is continuing to force motorists to fork over top dollar per gallon at the pump. Arizona drivers are currently paying $3.810 for a gallon of regular unleaded gasoline, an increase of 16 cents from last week. Tucson drivers hold on to the state’s lowest fuel price at $3.653 per gallon, while Flagstaff drivers continue to pay the most to fill their tanks at $3.911 per gallon. Nationwide, the current average for a gallon of gasoline is $3.952, an increase of 12 cents from last week. Twelve states, including the District of Columbia, have already surpassed the $4 per gallon threshold.

This week, the Department of Energy reported a large drop in gasoline and crude supplies. The drop continued to influence surging crude prices despite the agency also reporting a 0.6% drop in gasoline demand so far in 2008 and is forecasting the first year-over-year decline in fuel demand since 1991. While crude and fuel inventories remain at healthy levels nationally, it is important to note that as a result of a refinery incident recently in New Mexico, fuel supplies in Arizona are not as robust.

“Over the last several months, the prices of crude and gasoline have broken traditional norms. Gasoline prices have climbed 37.5 cents over the last month while crude oil continues to trade comfortably in the high $120 per barrel range,” said AAA Arizona Public Affairs Manager Linda Gorman. “If the price of gasoline continues to edge closer to the $4 per gallon mark, which is not out of the realm of possibilities given the current environment, more erosion in gasoline demand will occur as the summer wears on. Ultimately, this drop in demand should stabilize prices. However, it is difficult to determine at what point that will occur.”

The cheapest gasoline in the continental United States is in Missouri, where unleaded regular is $3.761 per gallon. Connecticut drivers continue to pay the most for fuel in the country at $4.223 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.