Pump Prices Jump in Response to Record Crude

Phoenix, Ariz., February 21, 2008 – Across the state and country, the last five weeks of fuel relief have come and gone, with motorists now bracing themselves for higher pump prices as gasoline climbs back toward the $3 per gallon mark. Statewide, the current average for a gallon of regular unleaded gasoline is currently $2.930 per gallon, a jump of nearly six cents from last week. Peoria drivers continue to hold on to the state’s lowest fuel price at $2.851 per gallon, while Flagstaff drivers continue to pay the most for fuel at $3.082 per gallon. However, the national average is currently $3.086 per gallon, an increase of nearly 11 cents from last week.

Despite evidence that demand for gasoline in the United States has been flat over the past two months and gasoline supplies continue to be plentiful for this time of year, crude oil made history once again this week as it closed above $100 per barrel for the first time ever. The spike in oil can largely be attributed to three factors. Aside from the ongoing legal dispute between Venezuela and ExxonMobil, there have been problems at refineries across the country, including an explosion and fire at the Big Spring refinery in Texas, and a power outage at a Hawaii refinery. Also this week, news reports stirred speculation that the Organization of Petroleum Exporting Countries (OPEC) could announce a cut in production at their March 5 meeting as a result of a slowdown in the global economy. 

“Record high crude prices have resulted in jittery reactions in the fuel markets, causing prices to immediately spike in anticipation of even higher wholesale prices,” said AAA Arizona Public Affairs Manager Linda Gorman. “Despite the recent price jump, Arizonans are currently paying less for fuel than 48 other states.  However, this anomaly is not likely to last much longer should oil continue to hover around the $100 per barrel mark. Also, the impending switchover to summer gasoline blends and the anticipated increase in gasoline demand is setting the stage for new all-time record high prices in the state.”

The cheapest gasoline in the continental U.S. is in Missouri, where unleaded regular is $2.909 per gallon. Drivers in New York are feeling the most pain at the pump as they continue to pay the most for fuel in the country at $3.267 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.