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Swine Flu Threatens Fuel, Crude Demand

 

Phoenix, Ariz., April 30, 2009.  Across the state and country, motorists are continuing to experience stabilization at the pump as a growing concern over the swine flu outbreak further threatens fuel and crude demand. Arizona motorists are currently paying an average of $1.907 for a gallon of regular unleaded gasoline, a drop of nearly a penny from last week and $1.534 less per gallon than motorists were paying this time last year. East Valley drivers are paying the least amount of money in the state with an average of $1.795 per gallon, while Flagstaff drivers find themselves on the opposite end of the spectrum at $2.137 per gallon. The nationwide average dropped more than a penny this week to an average of  $2.051 per gallon.

This week, the swine flu outbreak and its potential to inhibit summer travel plans helped keep crude prices in the low $50 range after rallying from $45 to $51 last week. Concerns over whether or not the virus will further suppress demand for fuel or crude oil come at a time when inventories have already shown significant growth as a result of weakened global demand.

“The spread of the swine flu could potentially lower demand if the summer travel season is significantly impacted by concerned travelers,” said Linda Gorman, public affairs director for AAA Arizona. “At this point, it is too early to determine the virus’ impact on summer travel, fuel demand or retail fuel prices.”

“Given current market factors, including continued lackluster demand, it is likely that pump prices will continue to be stable in the short-term,” added Gorman.

The cheapest gasoline in the lower 48 states can be found in Missouri, where unleaded regular is $1.862 per gallon. California motorists are continuing to pay the most for fuel in the country with an average of $2.358 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.

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)

$1.795

-0.2

$1.980

$2.177

$3.385

Flagstaff

$2.137

-0.7

$2.357

$2.334

$3.577

Glendale

$1.817

-2

$2.005

$2.175

$3.383

Peoria

$1.820

+1.6

$2.008

$2.206

$3.367

Phoenix (city)

$1.818

-0.3

$2.005

$2.179

$3.384

Pima County

$1.879

+0.7

$2.072

$2.219

$3.401

Prescott

(Tri-Cities)

$1.938

-0.8

$2.137

$2.217

$3.468

Scottsdale

(Scottsdale, Fountain Hills)

$1.875

-0.4

$2.068

$2.298

$3.448

Tucson

$1.874

+0.9

$2.067

$2.206

$3.390

Yuma

$1.970

+1.2

$2.172

$2.122

$3.478

Statewide

$1.907

-0.7

$2.104

$2.216

$3.441

National

$2.051

-1.1

$2.255

$2.259

$3.617

E-85

$1.752

-2.1

N/A

N/A

$2.980

*E85 MPG/BTU adjusted price

$2.305

-2.8

N/A

N/A

$3.922


*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 may be used on a daily basis by news media Web sites, but should include attribution to AAA.

 

 

                                                                                                                                            

 

                                                                                                                                                   

 

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