Phoenix, Ariz., July 8, 2009.  Across the state and country, motorists are continuing to watch pump prices descend as the price of fuel falls for the second consecutive week. Statewide, motorists are currently paying an average of $2.605 for a gallon of regular unleaded gasoline, a drop of more than four cents from last week. Today’s nationwide average is $2.593 per gallon, also a drop of nearly four cents from last week.  

This week, the price of crude oil retreated to the low $60 per barrel range. The fall of the commodity’s price can be attributed to this week’s report by the Department of Energy, which revealed an increase in fuel supplies for the fifth consecutive week. In addition, bleak economic news also pushed the commodity price lower as the US Department of Labor’s most recent report revealed a 26-year high, or 9.5 percent national unemployment rate.

“Arizona pump prices have fallen by three percent over the last 16 consecutive days,” said AAA Arizona Public Affairs Director Linda Gorman. “Given the fact that supplies are plentiful, demand remains weak, retail margins are healthy and there has been no improvement on the job front, it appears as though we’ve seen the worst of summer 2009 fuel prices, barring unforeseen circumstances. Looking ahead, pump prices will likely settle in the mid $2 range for the remainder of the summer.”

In Arizona, Tucson drivers are paying the least for fuel in the state at $2.449 per gallon, while Flagstaff motorists pay the most to fill their tanks at $2.733 per gallon. Nationwide, Missouri motorists are paying the nation’s lowest fuel price with an average of $2.361, while California motorists pay the most for fuel in the lower 48 states with an average of $2.951 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.