Pump Prices Begin to Stabilize After Four Month Climb

Phoenix, Ariz., June 25, 2008 – Across the state and country, pump prices are beginning to level-off after three record climbing months. Statewide, drivers are currently paying $4.076 for a gallon of regular unleaded gasoline, which is a drop of a penny from last week. Tucson drivers continue to hold on to the state’s lowest fuel price at $3.817 per gallon, while Scottsdale drivers continue to pay the most to fill their tanks at $4.198 per gallon. Nationwide, the current average is $4.067 per gallon, which is a drop of half a penny from last week.

This morning, the Department of Energy reported an increase in crude supplies for the first time in six weeks. The agency also reported that demand for gasoline and other petroleum products have fallen by more than two percent over the last month. This news, which illustrates the strain $4 gasoline places on motorists, resulted in a $4 drop in crude prices.  

“Despite the continued volatility in the market, fuel prices have started to show signs of stabilization over the last few days,” said AAA Arizona Public Affairs Manager Linda Gorman. “However, it is difficult to determine whether or not this trend will continue as motorists take to the roads for the upcoming Fourth of July holiday. As the holiday nears, it is likely that we could see prices begin to increase again.”

The cheapest gasoline in the continental United States is in Oklahoma, where unleaded regular is $3.839 per gallon. California drivers are paying the most for fuel in the country at $4.602 per gallon.

Motorists can visit www.AAAAZ.com/news/fuelnews.htm for fuel price information and gas saving tips or go to www.AAA.com/fuelfinder to locate the station with the cheapest gas in their neighborhood. 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.

From now through September 30, drivers can also go to www.aaa.com/sweepstakes, visit a local AAA office or call 1.866.298.1232 to request a new insurance quote from AAA to receive a $10 gas card from AAA Insurance and be entered into the grand prize drawing of $20,000 in free gas. Those requesting a quote will also be entered into a monthly drawing to win $1,000 in free gas.

*Indicates record price.

 **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.