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Pump Prices Slow to Follow Receding Commodity Price

Phoenix, Ariz., January 28, 2010. Arizona fuel prices are a mixed bag this week, with prices edging up in some parts of the state while declining in others. When averaged together, this has led to a minimal change in Arizona’s statewide average. Statewide, the current average for a gallon of regular unleaded gasoline is $2.674, an increase of 0.6 cents from last week. Today’s nationwide average sits at $2.690 per gallon, a drop of 4.3 cents from last week.

Healthy supplies and weak demand continue to contribute to a stabilized crude price, thereby working in favor of lower fuel prices. In fact, the Department of Energy recently revealed US stockpiles are at their highest level since March 2008. Meanwhile, gasoline demand, as measured by the Energy Information Administration, hit a low last week that has not been achieved since 2004.

“Retail fuel prices have been slow to follow the correction in oil prices over the past two weeks, despite weak demand and a healthy margin for retailers,” said AAA Arizona Public Affairs Director Linda Gorman. “If these trends continue, there is no reason why fuel prices shouldn’t follow suit in Arizona, at least in the short-term.”

In Arizona, Tucson drivers are paying the state’s lowest fuel price with an average of $2.572, while Flagstaff motorists are paying the state’s highest fuel price with an average of $2.794 per gallon. Nationwide, motorists in Missouri are paying the nation’s lowest fuel price with an average of $2.477 per gallon, while California motorists continue to pay the most for fuel in the lower 48 states with an average of $3.019 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.


City

Today’s Price

Change from last week

Premium

Diesel

Last Year’s Price

East Valley
(Mesa, Gilbert, Chandler, Tempe, Ahwatukee, Apache Junction, Queen Creek)

$2.641

+2.3

$2.913

$2.832

$1.844

Flagstaff

$2.794

-0.9

$3.082

$2.945

$1.972

Glendale

$2.641

+0.9

$2.913

$2.863

$1.853

Peoria

$2.629

+1.7

$2.900

$2.850

$1.843

Phoenix (city)

$2.651

+1.8

$2.924

$2.867

$1.857

Pima County

$2.584

-1.9

$2.850

$2.910

$1.836

Prescott
(Tri-Cities)

$2.681

+0.6

$2.957

$2.924

$1.862

Scottsdale
(Scottsdale, Fountain Hills)

$2.728

+1.1

$3.009

$2.967

$1.892

Tucson

$2.572

-2.0

$2.836

$2.892

$1.829

Yuma

$2.721

-2.6

$3.002

$2.766

$1.868

Statewide

$2.674

+0.6

$2.949

$2.893

$1.890

National

$2.690

-4.3

$2.960

$2.878

$1.842

E-85

$2.307

-3.4

$1.611

*E85 MPG/BTU adjusted price

$3.037

-4.4

-

-

$2.120

 

*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.

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