Phoenix, Ariz., January 22, 2009. Across the state and country, motorists are continuing to pay more to fill their tanks as the price of fuel increases for the third straight week. Statewide, motorists are paying an average of $1.853 for a gallon of regular unleaded gasoline, an increase of nearly seven cents from last week. In addition, for the first time in nearly six weeks, Arizona’s statewide average has risen above the nationwide average, which increased by just more than three pennies this week to $1.850 per gallon. Tucson drivers continue to pay the state’s lowest fuel price with an average of $1.766 per gallon while Flagstaff drivers are paying the most for fuel in the state with an average of $1.946 per gallon.

This week, the disparity between the cost of crude oil and gasoline continued as state and nationwide prices showed gains despite crude oil trading in the low $40 per barrel range. Locally, this can be attributed to tightened supply issues in addition to a nationwide trend of refiners cutting back production as a result of waning demand. In fact, despite motorists paying $1.074 and $1.160 less for fuel state and nationwide, respectively, compared to last year, the trend of falling demand has continued according to the Department of Transportation. The agency issued a report this week that revealed Americans drove 5.3 percent less, or 12.9 billion fewer miles in November 2008 compared to the same time frame last year.

“Tightened supply issues across the state have continued to result in local prices experiencing steeper price increases compared to other parts of the country,” said Linda Gorman, public affairs director for AAA Arizona. “While the situation is continuing to be addressed, Arizona motorists are likely to see further increases at the pump until it is rectified.”   

The cheapest gasoline in the lower 48 states can be found in Wyoming, where unleaded regular is $1.490 per gallon. California motorists are paying the most for fuel in the country with an average of $2.090 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.

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NOTE: AAA Fuel Gauge data may be used on a daily basis by news media Web sites, but should include attribution to AAA.