Phoenix, Ariz., August 6, 2009. Across the state and country, pump prices continue to reverse their downward course as the price of fuel increases for the second straight week. Statewide, motorists are currently paying an average of $2.566 for a gallon of regular unleaded gasoline, an increase of nearly six cents since last week. Today’s nationwide average is $2.610 per gallon, an increase of more than nine cents from last week.

This week, the price of crude oil was pushed into the low $70 per barrel range on a mix of positive global economic news and the weakened US dollar, which continues to lack stability compared to other currencies.  

“Continued market volatility has had an adverse effect on what motorists are paying at the pump as retail fuel prices continue to follow market oil prices,” said Linda Gorman, public affairs director for AAA Arizona. “However, it is important to note that the run-up in the commodity’s price is based more on optimism about the future prospects for the economy than on current supply and demand, as oil supplies are abundant and demand is still sluggish. These factors should dampen the chance for a substantial spike in crude and fuel prices in the short-term, barring unforeseen circumstances.”

Also this week, the National Oceanic and Atmospheric Administration (NOAA) announced that the 2009 Atlantic Hurricane Season is likely to be a below or near-normal season. NOAA expects most storm activity to take place from August through October, with the peak of the season occurring in early to mid-September.

“The effect that hurricane season will have on pump prices will largely depend on damage incurred by refineries and/or infrastructure,” added Gorman. “Generally, the threat of a storm alone is enough to tighten fuel prices. The amount of damage is what determines whether a storm’s effect will be short-lived or longer lasting.”

In Arizona, Tucson drivers are paying the least for fuel in the state at $2.384 per gallon, while Flagstaff motorists pay the most to fill their tanks at $2.748 per gallon. Nationwide, South Carolina motorists are paying the nation’s lowest fuel price with an average of $2.391, while California motorists pay the most for fuel in the lower 48 states with an average of $2.979 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.