Phoenix, Ariz., Feb. 12, 2009. As Arizona motorists watch Congress battle over plans to stimulate the economy, they are reliving a spurt in fuel prices that has left the price of gasoline above $2 a gallon for the first time since late November. Statewide, motorists are paying an average of $2.011 for a gallon of regular unleaded gasoline, an increase of more than six cents from last week. Tucson drivers reclaimed their status this week as having the state’s lowest fuel price with an average of $1.929 per gallon, while Flagstaff drivers are continuing to pay the most for fuel in the state with an average of $2.123 per gallon. The nationwide average is also inching toward $2, increasing this week by more than four pennies to $1.952 per gallon.

This week, crude oil fell to a four-week low of $35 per barrel as Congress tentatively agreed to a $789 million stimulus package that is slated to inject funds into the marketplace in an attempt to revitalize the economy. If the stimulus package achieves its desired results, it would result in market stabilization, which could ultimately translate into an upswing in oil and fuel prices. However, with January reporting a loss of about 600,000 jobs nationwide, bringing the national unemployment rate to 7.6 percent, it is unlikely that fuel demand will recover in the short term.

“Motorists are watching their fuel bills at the pump increase, despite the fact that demand continues to lag and oil prices are at some of the lowest rates we’ve seen in recent history.  This indicates that refineries are continuing to trim production until the market delivers healthier profits,” said Linda Gorman, public affairs director for AAA Arizona. “On the bright side, it is not likely that gas prices will continue to rise as dramatically as they did last year when they reached double the cost they are now, at over $4 a gallon.”

“However, should the stimulus package work as intended by President Obama and Congress, motorists could continue to see prices rise as the economy begins to recover,” Gorman added.

The cheapest gasoline in the lower 48 states can be found in Wyoming, where unleaded regular is $1.680 per gallon. California motorists are continuing to pay the most for fuel in the country with an average of $2.254 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.