Phoenix, Ariz., Feb. 5, 2009. Arizona motorists are continuing to watch the price of fuel move in the same direction as the state’s heightening temperature, a confusing trend to some as the disparity between the price of crude oil and gasoline continues for the fifth straight week. Statewide, motorists are paying an average of $1.948 for a gallon of regular unleaded gasoline, an increase of more than five cents from last week. Peoria drivers this week are paying the state’s lowest fuel price with an average of $1.867 per gallon, while Flagstaff drivers are paying the most for fuel in the state with an average that has jumped above the $2-mark to $2.058 per gallon. The nationwide average increased by more than six cents this week to $1.907 per gallon.

As the rising price of fuel continues to contrast with the stabilized price of crude oil, many consumers are wondering why pump prices are going up when the economy is contracting, oil prices are going down and government reports indicate motorists are driving less. The reason for this disparity can in large part be attributed to gasoline refiners cutting their output either by choice or due to ‘maintenance and operational issues.’ Another factor that has elevated prices is the threat of a strike by the United Steel Workers Union at about one-third of the nations’ gasoline refineries. Union representatives are continuing to negotiate contracts for refinery workers at about 86 plants across the country.

“Many drivers want to know why pump prices have continued to increase when the price of crude oil has stabilized in the low to mid $40 per barrel range over the last few weeks,” said Linda Gorman, public affairs director for AAA Arizona. “During summer months, the commodity was in large part the driving factor behind fuel prices. However, the current upswing in prices is being driven by refining profit margins—or lack thereof. Cuts in production and output have led to an artificial tightening of  supplies and therefore higher pump prices—in large part as an attempt to boost profit margins.”

“It’s  difficult to hear about refiners trying to capitalize on consumers in the current economy,” added Gorman. “The current situation really underscores the need for our leaders to once and for all develop  a comprehensive energy plan.”

The cheapest gasoline in the lower 48 states can be found in Wyoming, where unleaded regular is $1.593 per gallon. California motorists continue to pay the most for fuel in the country with an average of $2.157 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.

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