Phoenix, Ariz., July 30, 2009. Across the state and country, the price slide at the pump has reversed as the cost of fuel increases for the first time in a month. Statewide, motorists are currently paying an average of $2.509 for a gallon of regular unleaded gasoline, an increase of 1.5 cents since last week. In addition, today's statewide fuel price brings Arizona’s July fuel average to $2.545 per gallon – the lowest statewide fuel average for the month of July since 2005. Today’s nationwide average is $2.516 per gallon, an increase of a nickel from last week.   

This week proved to be volatile for the energy market with crude oil fluctuating from the low to high $60 per barrel range. Today, the commodity’s price rebounded to the mid $60 per barrel range, following a six percent decline in price yesterday. The recent fluctuation in crude’s price continues to be fueled by speculation on the global economy’s state of limbo. This is evidenced by the market's reaction to signs of economic improvement, such as the positive news of solid corporate earnings reports, and deterioration, such as the negative news of high unemployment filings.

“As a result of the market being driven by speculation rather than fundamentals, we’ve seen the price of crude oil fluctuate dramatically this summer as traders and analysts attempt to predict when and to what degree prices will move up or down,” said Linda Gorman, public affairs director for AAA Arizona. “However, it is important to note that while pump prices were tugged higher this week as a result of the movement of crude and therefore wholesale prices, there is little evidence to suggest prices will move significantly in either direction in the short term or for the remainder of the summer, barring unforeseen circumstances.”

In Arizona, Tucson drivers are paying the least for fuel in the state at $2.314 per gallon, while Flagstaff motorists pay the most to fill their tanks at $2.671 per gallon. Nationwide, South Carolina motorists are paying the nation’s lowest fuel price with an average of $2.297, while California motorists pay the most for fuel in the lower 48 states with an average of $2.866 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.