Crude, Fuel Prices Continue Record Two-Month Run

Phoenix, Ariz., April 10, 2008 – Across the state and country, motorists are feeling more pain at the pump as fuel prices continue their record run for the eighth consecutive week. Arizona’s statewide average for regular unleaded gasoline is currently $3.290 per gallon, an increase of over three cents from last week. Tucson drivers continue to pay the state’s lowest fuel price at $3.184 per gallon, while Flagstaff drivers continue to pay the most to fill their tanks at $3.415 per gallon. Nationwide, the current average is $3.357 per gallon, an increase of nearly seven cents from last week.

Yesterday, crude oil reached an all-time high of $112.21 per barrel after the Department of Energy reported larger than expected drops in inventories of oil and gasoline. Refineries are only operating at approximately 83 percent of their capacity, which is about 10 percent below normal output levels. While refinery production is generally below normal this time of year as a result of spring maintenance, speculation continues  that shrinking profit margins are also the cause behind this larger-than-expected drop in production levels.

“Unfortunately for motorists, it does not appear that there is much relief in sight, at least for the short-term,” said Linda Gorman, public affairs manager for AAA Arizona. “In fact, the current market indicates that prices will continue to inch toward the $3.50 per gallon mark AAA  forecasted pump prices would reach between now and Memorial Day.”

The cheapest gasoline in the continental United States is in New Jersey, where unleaded regular is $3.080 per gallon. California drivers continue to pay the most for fuel in the country at $3.750 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 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.