Crude, Pump Prices Drop Despite Geopolitical Conflict
Phoenix, Ariz., August 14, 2008 – While the best athletes in the world are competing for an Olympic medal and breaking world records in Beijing, this week, the price of crude oil and gasoline continues to shy away from their record-highs. Statewide, drivers are currently paying an average of $3.769 for a gallon of regular unleaded gasoline, a drop of nearly six cents from last week and 30 cents from last month. Tucson drivers continue to hold the state’s lowest fuel price at $3.623 per gallon, while Flagstaff drivers continue to pay the most to fill their tanks at $4.025 per gallon. Nationwide, the current average is $3.778 per gallon, which is also a drop of nearly six cents from last week.
This week, Russia’s military incursion into Georgia was largely ignored by traders while crude prices scaled back to the $113 per barrel range on news of demand settling at a five-year low. This is the first time this decade that military activity in an oil sensitive region of the world failed to spark a rally in the market. Yesterday, crude prices recovered slightly after the Department of Energy reported a larger than expected drop in fuel supplies. However, prices have since fallen back to the $113 per barrel range after the Department of Labor reported an increase in inflation and an unemployment rate that is above expectations, both pointing to a weakened economy and ultimately, demand concerns. Also contributing to crude price recovery is the strengthened greenback, which recently achieved a six-month high against other currencies.
“The further both crude oil and gasoline prices fall back from their record highs, the more likely it will be for our leaders and consumers to resume a more relaxed approach to our energy crisis,” said AAA Arizona Public Affairs Manager Linda Gorman. “If we allow this to happen, we will undoubtedly see record high crude and gasoline prices again. Now more than ever it is critical for our leaders and consumers to work towards reducing energy consumption while pushing for a long-term energy solution.”
The cheapest gasoline in the continental United States is in Missouri, where unleaded regular is $3.528 per gallon. Utah drivers are paying the most for fuel in the country at $4.087 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.
From now through September 30, drivers can also go to www.aaa.com/sweepstakes, visit a local AAA office or call 1.866.298.1232 to request a new insurance quote from AAA to receive a $10 gas card from AAA Insurance and be entered into the grand prize drawing of $20,000 in free gas. Those requesting a quote will also be entered into a monthly drawing to win $1,000 in free gas.
City |
Today’s Price |
Change from last week |
Premium
|
Diesel
|
Last Year’s Price |
East Valley
(Mesa, Gilbert, Chandler, Tempe, Ahwatukee, Apache, Queen Creek) |
$3.718
|
-6.3 |
$3.982 |
$4.158 |
$2.583 |
Flagstaff |
$4.025 |
-4.4 |
$4.313 |
$4.545 |
$2.870 |
Glendale |
$3.733 |
-7.2 |
$3.999 |
$4.285 |
$2.617 |
Peoria |
$3.716 |
-11.0 |
$3.981 |
$4.359 |
$2.601 |
Phoenix (city) |
$3.735 |
-7.0 |
$4.001 |
$4.246 |
$2.606 |
Pima County |
$3.645 |
-4.6 |
$3.905 |
$4.356 |
$2.669 |
Prescott
(Tri-Cities) |
$3.758 |
-5.6 |
$4.025 |
$4.276 |
$2.760 |
Scottsdale
(Scottsdale, Fountain Hills) |
$3.820 |
-7.6 |
$4.092 |
$4.389 |
$2.681 |
Tucson |
$3.623 |
-4.5 |
$3.880 |
$4.313 |
$2.648 |
Yuma |
$3.687 |
-6.9 |
$3.949 |
$4.077 |
$2.687 |
Statewide |
$3.769
|
-5.7 |
$4.037 |
$4.326 |
$2.676 |
National |
$3.778 |
-5.8 |
$4.060 |
$4.470 |
$2.762 |
E-85 |
$3.053 |
-4.1 |
N/A |
N/A |
N/A |
*E85 MPG/BTU adjusted price |
$4.017 |
-5.4 |
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. |
