Record Fuel Prices Push Leaders to Propose Solutions

Phoenix, Ariz., June 19, 2008 – Across the state and country, motorists with a full tank of gas are likely to have a wallet running on empty as the price of fuel continues its unrelenting climb. Arizona drivers are currently paying $4.086 for a gallon of regular unleaded gasoline, which is an increase of four cents from last week and a $1.075 jump from pump prices this time last year. Tucson drivers continue to hold on to the state’s lowest fuel price at $3.833 per gallon, while Scottsdale drivers continue to pay the most to fill their tanks at $4.198 per gallon. Aside from Tucson, Pima County is the only remaining area of the state with a fuel average below the $4 mark. Nationwide, the current average is $4.073, an increase of just over a penny from last week.

This week, Congress continued to apply pressure to commodity regulators in attempts to correct overpriced crude oil and put measures in place that would prevent investors and speculators from artificially inflating the market. Meanwhile, Saudi Arabia announced it would increase its oil production by 800,000 more barrels of oil per day, while President Bush and Senator John McCain, the presumed Republican nominee for president, urged Congress to lift the ban on offshore drilling and increase domestic drilling in order to combat record gasoline prices.

“While drilling for more oil domestically might seem like the best option in the short-term, it does nothing to address the bottom line – America’s dependence on oil,” said AAA Arizona Public Affairs Manager Linda Gorman. “While it is encouraging to see our leaders work to alleviate the burden gas prices are having on motorists, AAA encourages President Bush, Senator McCain and members of Congress to take a more aggressive look at our energy policy and come up with a comprehensive, long-term solution.”

Also this week, massive flooding occurred in Iowa and Illinois, the nation's top two corn-growing states. The extent of the damage is not yet known, however the crop devastation has already resulted in increased corn and thereby ethanol prices. While it is still too soon to tell, it is possible that higher ethanol costs will make their way into the price of the gasoline that it is blended with. However, it is important to note that crude oil continues to be the driving force behind gasoline prices.

The cheapest gasoline in the continental United States is in Missouri, where unleaded regular is $3.834 per gallon. California drivers are paying the most for fuel in the country at $4.610 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.

*Indicates record price.

 **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.