FOR IMMEDIATE RELEASE

Phoenix, Ariz., Mar. 5, 2009. Across the state and nation, motorists are continuing to see prices at the pump retreat, albeit slightly, from week-ago figures. Statewide, motorists are paying an average of $2.010 for a gallon of regular unleaded gasoline, a decrease of a little more than a penny from last week. Tucson drivers are continuing to pay the state’s lowest fuel price with an average of $1.876 per gallon, while Flagstaff drivers continue to pay the state’s highest fuel price with an average of $2.171 per gallon. The current nationwide average increased by a nickel this week before leveling off at $1.933 per gallon, where is has remained for the last three days.

Early this week, economic news concerning banks and insurance companies pushed stock market averages to new lows and sent crude oil to the low-$40 per barrel range, a 10 percent drop from last week. The commodity’s price has since rebounded to the mid-$40 per barrel range as a result of a mid-week government report which revealed a decline in crude inventories. A higher price of crude oil would typically add strength to pump prices. However, slowed demand for goods and services, including motor fuels, has continued to work to the contrary.

“Over the last week, statewide prices have begun to show early signs of stabilization,” said Linda Gorman, director of public affairs for AAA Arizona. “This can be attributed to a drop in wholesale gasoline prices and to improving retail margins, which are still in the red but have shown dramatic improvements from previous weeks.”

“Demand will play a large role in where fuel prices are headed in the near future,” Gorman added. “An increase in demand would work in favor of raised pump price, while demand remaining flat or continuing its trend downward would work in favor of continued stabilization at the pump.”

The cheapest gasoline in the lower 48 states can be found in Wyoming, where unleaded regular is $1.749 per gallon. California motorists are continuing to pay the most for fuel in the country with an average of $2.233 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.

*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.

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NOTE: AAA Fuel Gauge data may be used on a daily basis by news media Web sites, but should include attribution to AAA.