Phoenix, Ariz., Oct. 15, 2009. Prices across the state have continued their downward trend from last week, despite a nationwide average that is heading the opposite direction. Statewide, the current fuel average is $2.43 per gallon, a drop of nearly two cents from last week. Today’s nationwide average sits at $2.487 per gallon, an increase of nearly two cents from last week.

After remaining fairly stable for several weeks, oil prices rose this week to close at a one-year high on Wednesday. Today’s report from the Department of Energy created a bullish sentiment, causing prices to drift a few cents higher today, with the commodity currently trading in the $75 per barrel range. Much of the motivation for the recent price jump appears to be growing optimism for the start of a global economic recovery, as well as some concern over refinery production.

“The energy report released today created some initial shock in the market, as refineries reported huge cuts in production that might ordinarily be associated with hurricane damage,” said Linda Gorman, public affairs director for AAA Arizona. “Refineries have been watching their output as well as gasoline demand very closely, being careful not to overproduce as they did in the fall and winter of 2008 when most saw their margins take a nosedive.”

“Even amidst these issues, Arizonans shouldn’t expect a swift uptick in fuel prices, as our state is not being impacted by market forces as much as other parts of the country,” added Gorman. “Barring unforeseen circumstances, we will likely see a small drop in prices, followed by stabilization for the rest of the year. It is important to note, however, that the sharp price declines we experienced in the last few months of 2008 were extremely unusual, and are not likely to make a return appearance in 2009.”

In Arizona, Tucson drivers continue to pay the least for fuel in the state with an average of $2.218 per gallon, while Flagstaff motorists continue to pay the most to fill their tanks with an average fuel price of $2.646 per gallon. Nationwide, South Carolina motorists continue to pay the nation’s lowest fuel price with an average of $2.269 per gallon, while California motorists continue to pay the most for fuel in the lower 48 states with an average of $3.012 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.