As Unleaded Nears Record, Diesel Fuel Sits at 4-Year High

Phoenix, Ariz., March 6, 2008 – Across the state and nation, consumers are feeling pain at the pump as gasoline prices continue to rise. Currently, the statewide average for a gallon of regular unleaded gasoline is $3.105 per gallon, an increase of over a nickel from last week, and less than three cents away from the state’s all-time high.  East Valley drivers are paying the state’s lowest fuel price at $3.035 per gallon, while Flagstaff drivers continue to pay the most to fill their tanks at $3.241 per gallon. Nationwide, the current average is $3.185, an increase of more than two cents since last week.

While the current price of unleaded fuel in Arizona is 62 cents higher than it was this time last year, the price of diesel fuel has climbed nearly 89 cents to a staggering $3.682 per gallon average over the same time period. In fact, statewide diesel prices have broken all-time highs for four consecutive days. This is also the case across the country as the current nationwide average for diesel is sitting at $3.710, an increase of $1.01 from this time last year.

Most consumers recall that up until a few years ago, the average price of diesel fuel was generally lower than unleaded gasoline. However, since 2004, diesel prices have nearly doubled. Surging diesel prices over the last four years can be attributed to rising global demand, the transition to and increased costs associated with the use of  low-sulfur diesel fuel and higher federal taxes, which are six cents higher per gallon than regular gasoline.

To illustrate diesel’s increasing cost, below is a list of statewide diesel averages from March 2004:

“There is a direct correlation between increased diesel costs and what consumers pay for goods and services. When companies are forced to pay nearly twice the amount they paid in 2004 to deliver products to retail outlets, they have no choice but to charge more for those products in order to recoup some of their transportation costs” said AAA Public Affairs Manager Linda Gorman. “As we are in the midst of gasoline refinery maintenance season and oil continues to trade above $100 per barrel, it is very likely that Arizona will continue to see record-breaking pump prices for both regular and diesel fuel in spring and beyond.”

The cheapest gasoline in the continental U.S. is in Missouri, where unleaded regular is $2.971 per gallon. California drivers are paying the most for fuel in the country at $3.523 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.