Phoenix, Ariz., March 26, 2009. Arizona fuel prices tightened up this week as crude oil prices reached new highs for the year. Statewide, motorists are paying an average of $1.935 for a gallon of regular unleaded gasoline, a decrease of less than a penny from last week. Tucson drivers are continuing to pay the state’s lowest fuel price with an average of $1.794 per gallon, while Flagstaff drivers continue to pay the state’s highest fuel price with an average of $2.150 per gallon. The nationwide average today reached the $2-range, increasing by nearly nine cents this week to $2.009 per gallon.

This week, the price of crude oil has risen to its highest level in almost four months, pushed largely by a rally in the stock market. Crude prices have seen more than a 20 percent increase in prices since the beginning of the year.

“While crude oil has traded in the $50-range for the last week, Arizona fuel prices have remained relatively stable, but are beginning to tighten up. This can be attributed, in large part, to improved retail margins, which have risen from a 17-cent per gallon deficit in January, to most recent averages of an 11-cent gain per gallon sold,” said Linda Gorman, director of public affairs for AAA Arizona. “However, should crude oil continue to trade in the $50-per barrel range, we could start to see prices start to creep back up in the short-term.

“The good news for motorists is that large inventories of oil supply have already been produced and remain untapped, as a result of the economic slowdown,” Gorman added. “The existence of this supply will make it easier to meet any increase in demand and may help temper the trickle down effect a higher crude price has on pump prices.”

 The cheapest gasoline in the lower 48 states can be found in Wyoming, where unleaded regular is $1.798 per gallon. California motorists are continuing to pay the most for fuel in the country with an average of $2.201 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.