Phoenix, Ariz., June 24, 2009.  Across the state and country, motorists are beginning to experience relief as the price of fuel has begun to fall after a near two month rise. Statewide, motorists are currently paying an average of $2.669 per gallon, an increase of more than two cents from last week. Today’s nationwide average is $2.676 per gallon, a decrease of less than a penny from last week. Pump prices began to retreat earlier this week, with the state and national average falling by more than a penny since Monday.  

This week, the nearly two month run up in oil and fuel prices gave way to economic reality as crude prices dipped into the high $60 range while retail fuel prices fell for the first time in more than 50 days. Since early May, oil and gasoline prices have risen on glimmers of an economic turnaround and pure market momentum. However, this climb defied the fundamentals of the market given the weak state of the global economy, large amounts of existing supply and continued meager demand.

“While the depth of the correction in crude and fuel prices is unknown at this point, it has provided at least a temporary break to retail prices after a two month climb,” said Linda Gorman, public affairs director for AAA Arizona. “Given current market factors, prices are likely to continue their current downward direction before tightening up heading into the Fourth of July holiday weekend.”

In Arizona, Tucson drivers continue to pay the least for fuel in the state at $2.501 per gallon, while Flagstaff motorists pay the most to fill their tanks at $2.761 per gallon. Nationwide, Missouri continues to hold on to the nation’s lowest fuel price with an average of $2.487. California motorists are paying the most for fuel in the lower 48 states with an average of $3.022 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.

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