Phoenix, Ariz., Feb. 26, 2009. Arizona motorists are experiencing a bit of relief this week as the statewide average price of fuel drops for the first time in eight weeks. However, given current market factors, it is too soon to tell whether this trend is here to stay. Statewide, motorists are paying an average of $2.023 for a gallon of regular unleaded gasoline, a decrease of more than two cents since last week. Tucson drivers continue to pay the state’s lowest fuel price with an average of $1.898 per gallon, while Flagstaff drivers are paying the most for fuel at an average of $2.170 per gallon. The nationwide average continued its downward direction this week, dropping nearly seven pennies overall since last week to $1.882 per gallon.

This week, the price of crude oil escalated to more than $40 per barrel after the Department of Energy reported a drop in gasoline supplies. However, despite crude’s movement upward, the nationwide average for a gallon of gasoline has dropped for 11 consecutive days. This can largely be attributed to the economic situation which has resulted in a continued drop in demand for crude oil, as the commodity’s stockpiles continue to grow, despite what appears to be production cuts by members of OPEC.

“While Arizona remains one of eight states paying more than $2 per gallon for fuel, for the first time in eight weeks, the statewide price of fuel has receded,” said Linda Gorman, director of public affairs for AAA Arizona. “Unfortunately, it is too soon to tell whether this is merely a hiccup or trend, especially considering that Arizona retail margins remain the weakest in the country. In the current environment, should profit margins improve, motorists will likely experience stabilization as we move into spring months.”

The cheapest gasoline in the lower 48 states can be found in Wyoming, where unleaded regular is $1.722 per gallon. California motorists are continuing to pay the most for fuel in the country with an average of $2.258 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.