FOR IMMEDIATE RELEASE

AAA Reports Largest Weekly Fuel Price Dip this Year

Phoenix, Ariz., July 16, 2009. Not since just before the Christmas holiday have motorists seen a weekly drop in fuel prices like what they experienced this past week.  Statewide, motorists are currently paying an average of $ 2.528 for a gallon of regular unleaded gasoline, a drop of just over six cents since last week.  The last time prices feel by that much over one week was the week of December 18.  Today’s nationwide average is $2.492 per gallon, a drop of nearly nine cents from last week. 

“Since hitting the $75 per barrel mark in June, oil prices have been on a steady downward trend,” said AAA Arizona Public Affairs Director Linda Gorman.  “Over the last two weeks alone, market oil prices have declined almost 20 per cent.  The previous increase in the price of oil was built mainly on hope for a forthcoming economic turnaround that has yet to materialize.”

The latest report from the Department of Energy showed that while demand for crude increased last week, supplies of both the commodity and refined gasoline remain near historically high levels.  Analysts have recently suggested a handful of oil producers could slow or stop production at some facilities if the price of oil falls too quickly towards the latter half of the summer. 

In Arizona, Tucson drivers are paying the least for fuel in the state at $2.355 per gallon, while Flagstaff motorists pay the most to fill their tanks at $2.659 per gallon. Nationwide, Missouri motorists are paying the nation’s lowest fuel price with an average of $2.245, while California motorists pay the most for fuel in the lower 48 states with an average of $2.871 per gallon.

Motorists can visit www.AAAAZ.com/news/fuelnews.htm for fuel price information and gas saving tips or go to www.AAA.com/fuelfinder to locate the station with the cheapest gas in their neighborhood. 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.

*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.

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NOTE: AAA Fuel Gauge data may be used on a daily basis by news media Web sites, but should include attribution to AAA.