Pump Prices, Crude Continue Breaking Records

Phoenix, Ariz., April 17, 2008 – Across the state and country, motorists continue to shell out top dollar at the pump as prices continue their upward trek for the ninth straight week. Arizona’s statewide average for regular unleaded gasoline is currently $3.341 per gallon, an increase of a nickel from last week. Tucson drivers continue to pay the state’s lowest fuel price at $3.230 per gallon, while Flagstaff drivers continue to pay the most to fill their tanks at $3.464 per gallon. Nationwide, the current average is $3.418 per gallon, an increase of six cents from last week.

This week, the falling dollar and a drop in crude and gasoline inventories drove oil prices to a new record high above $115 per barrel.  Meanwhile,  Arizona Senator and Republican presidential nominee John McCain proposed a temporary suspension of federal gasoline taxes to lessen the strain that current pump prices are causing consumers. The proposed suspension would temporarily suspend the18.4 cent-a-gallon federal gas tax from Memorial Day until Labor Day. Similar proposals were considered in the spring of 2000 when gas prices were inching toward $2 a gallon.

“AAA appreciates that our leaders are beginning to understand that current pump prices are straining many household budgets,” said Linda Gorman, public affairs manager for AAA Arizona. “However, it is important to consider that suspending federal fuel taxes for three months would result in an estimated $10 billion in lost revenue to the Highway Trust Fund at a time when we need more, not less, investment in our country’s transportation network. However, AAA continues to urge our leaders to take an aggressive look at our energy policy and come up with a comprehensive plan to conserve and create more alternative energy options in order to solve our addiction to oil.”

The cheapest gasoline in the continental United States is in New Jersey, where unleaded regular is $3.156 per gallon. California drivers continue to pay the most for fuel in the country at $3.822 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.  

 **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.