***NOTE: AAA Fuel Gauge data may be used on a daily basis by
news media Web sites, but should include attribution to AAA.***
Motorists Feel Fuel Hangover as New Year Begins
Phoenix, Ariz., January 3, 2008 – Motorists across the state and country might be enjoying the start of the New Year, but they certainly are not enjoying pump prices that have resumed another uphill climb. The statewide average for a gallon of regular unleaded gasoline is currently sitting at $2.972 per gallon, an increase of nearly three cents from last week. Tucson drivers continue to pay the state’s lowest fuel price at $2.900 per gallon, while Flagstaff drivers continue to pay the most for fuel at $3.077 per gallon. Nationally, the current average is $3.052 per gallon, a jump of over seven cents from last week.
Traditionally, the start of the New Year is a time of lower oil and gasoline pricing. For example, at the start of last year, crude traded near $50 per barrel and a gallon of fuel in Arizona cost $2.348 per gallon. Since then, the statewide average has increased by over 62 cents, the biggest jump in fuel cost at the start of any year in Arizona’s history. To illustrate this trend, below is a list of statewide fuel averages at the start of each year for the past five years:
January 2003: $1.365 per gallon
January 2004: $1.534 per gallon
January 2005: $1.824 per gallon
January 2006: $2.243 per gallon
January 2007: $2.348 per gallon
January 2008: $2.972 per gallon
While many factors can be attributed to rising fuel and crude costs, inventory concerns and geopolitical conflict have played substantial roles in influencing the market so far this year. In fact, today, oil prices were pushed back above $100 per barrel after the Department of Energy revealed a seventh consecutive week drop in domestic oil inventories in its weekly report. And while there have not been any recent events that have affected production or supplies in oil producing parts of the world, the recent assassination of Pakistani presidential candidate Bhutto and violence in Nigeria have created enough tension to affect crude costs.
“With oil making up over half of the cost of gasoline, pump prices are forced to climb when oil prices are high,” said AAA Arizona Public Affairs Manager Linda Gorman. “Crude prices have quintupled since trading near $20 per barrel in 2002. After nearly doubling in 2007 and hitting the $100 per barrel mark so early on in 2008, it is very likely that consumers will continue to see record prices for both crude and fuel throughout 2008.”
The cheapest gasoline in the continental U.S. is in Colorado, where unleaded regular is $2.839 per gallon. California has the highest priced gasoline in the country at $3.319 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) |
$2.935 |
+2.7 |
$3.237 |
$3.371 |
$2.375 |
East Valley
(Mesa, Gilbert, Chandler, Tempe, Ahwatukee, Apache, Queen Creek) |
$2.928 |
+4.0 |
$3.230 |
$3.359 |
$2.366 |
Glendale |
$2.938 |
+2.7 |
$3.240 |
$3.405 |
$2.361 |
Peoria |
$2.927 |
+3.2 |
$3.228 |
$3.371 |
$2.337 |
Scottsdale
(Scottsdale, Fountain Hills) |
$3.031 |
+4.7 |
$3.343 |
$3.405 |
$2.416 |
Tucson |
$2.900 |
+2.7 |
$3.199 |
$3.435 |
$2.243 |
Prescott
(Tri-Cities) |
$3.005 |
+3.2 |
$3.315 |
$3.392 |
$2.251 |
Pima County |
$2.907 |
+1.9 |
$3.206 |
$3.451 |
$2.256 |
Flagstaff |
$3.077 |
-3.5 |
$3.394 |
$3.446 |
$2.397 |
Yuma |
$2.982 |
+1.9 |
$3.290 |
$3.308 |
$2.340 |
Statewide |
$2.972 |
+2.8 |
$3.278 |
$3.402 |
$2.348 |
National |
$3.052 |
+7.1 |
$3.359 |
$3.425 |
$2.322 |
| E85 |
$2.508 |
+9.3 |
N/A |
N/A |
N/A |
E85 MPG/BTU
Adjusted Price |
$3.301 |
+12.3 |
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. |
