Pump Prices Reverse Course on Crude Jump

Phoenix, Ariz., January 7, 2010. Pump prices may have ended 2009 quietly, but they’re starting 2010 with a bang as a result of a jump in the price of crude oil. Statewide, the current average for a gallon of regular unleaded gasoline is $2.622, an increase of 2.3 cents from last week. Today’s nationwide average sits at $2.709 per gallon, an increase of seven cents from last week.

For the first time since fall 2008, this week, the price of crude oil jumped to a 14-month high above $83 per barrel. The movement of the commodity is in large part due to a cold snap across many parts of the country, which increased demand for heating oil and dragged the price of other oil related prices, such as crude, higher. Consequently, pump prices have followed suit, putting the nationwide average at its highest price since October 2008 and the statewide average at its highest price since September 2009.

“Unfortunately for motorists, pump prices have some catching up to do in the short-term as a result of crude’s recent surge,” said AAA Arizona Public Affairs Director Linda Gorman. “However, where crude prices go from here will play a large role in how high pump prices jump in the near future.”

“Looking ahead to spring and summer, a sustained, higher crude price could certainly command fuel prices above $3 per gallon,” added Gorman.  “Factors such as economic strength and fuel demand will also play a role in this scenario.”

In Arizona, Tucson drivers continue to pay the least for fuel in the state with an average of $2.532 per gallon, while Yuma motorists pay the most to fill their tanks with an average fuel price of $2.739 per gallon. Nationwide, motorists in Wyoming are paying the nation’s lowest fuel price with an average of $2.469 per gallon, while California motorists continue to pay the most for fuel in the lower 48 states with an average of $3.032 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 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 should include attribution to AAA.