Phoenix, Ariz., June 11, 2009.  Motorists across the state and country are continuing to spend more to fill their tanks as the price of fuel increases for the seventh straight week. In Arizona, motorists are currently paying an average price of $2.553 per gallon, an increase of 12.5 cents from last week. Tucson drivers continue to pay the least for fuel in the state with an average of $2.398 per gallon, while drivers in Flagstaff pay the most to fill their tanks at $2.642 per gallon. The nationwide average is currently sitting at $2.632 per gallon, an increase of six cents from last week.

This week, the price of crude oil extended above the $70 mark, after the release of the Department of Energy’s weekly report. The report revealed a drop in both crude and fuel inventories, as well as a slight uptick in fuel demand.

“Market momentum, which has been supported by slowed refinery activity, intermittent positive economic news and signs of fuel demand returning globally, has played a significant role in the current crude price rally,” said Linda Gorman, public affairs director for AAA Arizona. “Given that demand for fuel remains low and there are near-record supplies of both crude and fuel available, this momentum has essentially created a bubble in the oil market.”

“While the market should eventually correct itself, it’s difficult to determine when that will occur,” added Gorman. “Should present trends continue, motorists can expect to see fuel prices remain between $2.50 and $3.00 throughout the summer.”

This week, South Carolina continues to hold on to the nation’s lowest fuel price at $2.416. California motorists are paying the most for fuel in the country with an average of $2.945 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.