Phoenix, Ariz., August 27, 2009. Across the state and country, motorists are continuing to see pump prices plateau, as state and nationwide fuel prices slightly recede for the first time in a month. Statewide, motorists are currently paying an average of $2.639 for a gallon of regular unleaded gasoline, a drop of nearly a penny from last week. Today’s nationwide average is $2.620 per gallon, a drop of 0.4 cents from last week.

This week, positive economic news related to home sales surfaced, and data from the Federal Highway Administration revealed that the estimated vehicle-miles traveled for June 2009 increased by two percent compared to June 2008.  This news pushed crude oil to test 2009 highs in the mid $70 per barrel range. However, the commodity has since retreated to the low $70 per barrel range on the heels of the Department of Energy’s weekly report, which revealed strong supplies of both oil and gasoline.

“While the price of fuel dropped this week for the first time in a month, it’s important to remember that  millions of Americans will hit the road for Labor Day next weekend to take their last leisure trip of the summer,” said AAA Arizona Public Affairs Director Linda Gorman. “Consequently, with holiday traffic and continued market volatility, we could see prices take a temporary upturn next week as the holiday weekend approaches.”

In Arizona, Tucson drivers continue to pay the least for fuel in the state with an average of $2.460 per gallon, while Flagstaff motorists continue to pay the most to fill their tanks with an average fuel price of $2.763 per gallon. Nationwide, South Carolina motorists continue to pay the nation’s lowest fuel price with an average of $2.386 per gallon, while California motorists continue to pay the most for fuel in the lower 48 states with an average of $3.049 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.