Phoenix, Ariz., May 13, 2009.  After 65 days under the $2 threshold, motorists statewide are starting to see quick turnaround in pump prices due to a surge in crude oil and wholesale gasoline prices. Arizona motorists are paying an average of $2.012 for a gallon of regular unleaded gasoline, an increase of more than eight cents from last week. Phoenix drivers continue to pay the least amount of money for fuel in the state with an average of $1.953 per gallon, while Flagstaff drivers find themselves on the opposite end of the spectrum at $2.175 per gallon. The nationwide average increased more than 12 pennies this week to an average of $2.267 per gallon.

This week, as some retailers prepare to transition to the federally mandated summer blend of fuel, which is cleaner burning and more expensive to produce, the price of crude oil climbed to a six-month high of $60 per barrel before settling in the high $50-range. This news came despite demand for the commodity sitting at a 10-year low. Meanwhile, the commodity’s surge has pushed wholesale gasoline prices into a rapid increase, by as much as 30 cents in some parts of the country, forcing retail margins to slide and prices at the pump to experience a reversal.

“The rapid rise of crude and wholesale prices, this week’s switch to Arizona’s summer blend of fuel in some parts of the state and the impending start of the summer driving season are all factors that have reversed the downward price trend,” said Linda Gorman, public affairs director for AAA Arizona. “While this will likely result in a continued upswing in pump prices in the near future, it is unlikely that we’ll experience record-breaking prices as we did last summer. Rather, prices in the mid-$2 range are much more likely, given current market factors.”

The cheapest gasoline in the lower 48 states this week remains in Arizona. Washington motorists are continuing to pay the most for fuel in the country with an average of $2.486 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.

*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.