Pump Pains Persist as Crude Backs Down on Weak Demand
Phoenix, Ariz., March 19, 2008 – While children across the state and country are gearing up to hunt Easter eggs this Sunday, motorists fueling up before the holiday are continuing to hunt for the cheapest gasoline prices in town as fuel prices increase for the fifth consecutive week. Currently, Arizona’s statewide average for regular unleaded gasoline is $3.236 per gallon, an increase of over four cents from last week. Tucson drivers hold on to the state’s lowest fuel price at $3.142 per gallon, while Flagstaff drivers continue to pay the most to fill their tanks at $3.362 per gallon. Nationwide, the current average is $3.279, an increase of just over a penny from last week.
This week, the Federal Reserve cut interest rates by 3/4 of a percent. Normally, an interest rate cut weakens the dollar and pushes oil prices higher, as a weaker dollar provides less incentive for oil exporting countries to increase output and makes oil a more lucrative commodity for foreign investors. However, after the announcement of the latest cut was made Tuesday, oil prices dropped from the $111 per barrel range to mid $100 per barrel range. Weak demand is credited for this retreat in crude prices as the Department of Energy reported a 3.2 percent drop in consumption of oil and refined products and a one percent drop in gasoline demand over the last four weeks.
“Over the last few weeks, the market has been driven strictly by record breaking crude prices. While crude is still no bargain, trading at over $100 per barrel, over the last 48 hours we have seen it back away from record highs,” said Linda Gorman, public affairs manager for AAA Arizona. “This could mean that the market is beginning to normalize with weak demand placing downward pressure on oil prices. However, it is really too soon to tell if this will continue as the market remains volatile. Additionally, we would have to see several days of crude trading at lower prices before it would translate to lower prices at the pump.”
The cheapest gasoline in the continental United States is in New Jersey, where unleaded regular is $3.056 per gallon. California drivers continue to pay the most for fuel in the country at $3.631 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.
City |
Today’s Price |
Change from last week |
Premium |
Diesel |
Last Year’s Price |
Phoenix (city ) |
$3.199 |
+5.1 |
$3.529 |
$3.963 |
$2.697 |
East Valley
(Mesa, Gilbert, Chandler, Tempe, Ahwatukee, Apache, Queen Creek) |
$3.188 |
+4.4 |
$3.517 |
$3.960 |
$2.690 |
Glendale |
$3.206 |
+4.7 |
$3.536 |
$3.941 |
$2.704 |
Peoria |
$3.192 |
+3.1 |
$3.521 |
$3.845 |
$2.682 |
Scottsdale
(Scottsdale, Fountain Hills) |
$3.239 |
+3.3 |
$3.573 |
$3.971 |
$2.761 |
Tucson |
$3.142 |
+3.3 |
$3.466 |
$3.927 |
$2.598 |
Prescott
(Tri-Cities) |
$3.248 |
+4.4 |
$3.583 |
$4.017 |
$2.628 |
Pima County |
$3.157 |
+3.6 |
$3.482 |
$3.946 |
$2.612 |
Flagstaff |
$3.362 |
+4.2 |
$3.707 |
$4.018 |
$2.682 |
Yuma |
$3.276 |
+1.4 |
$3.613 |
$3.847 |
$2.699 |
Statewide |
$3.236 |
+4.5 |
$3.570 |
$3.975 |
$2.696 |
National |
$3.279 |
+1.2 |
$3.608 |
$4.025 |
$2.556 |
E-85 |
$2.721 |
+5.8 |
N/A |
N/A |
N/A |
**E85 MPG/BTU adjusted price |
$3.581 |
+7.7 |
N/A |
N/A |
N/A |
**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. |
