Gas prices stable but not for long

By XAVIER ZARAGOZA
The Daily Dispatch
Published/Last Modified on Friday, March 28, 2008 3:06 PM MDT


Gas prices have stabilized, but it won’t last for long, according to the American Automobile Association.


Arizona’s statewide average for regular unleaded gasoline is about $3.239 per gallon, which reflects an increase of one cent from last week fuel prices.

In Douglas, the cost of regular unleaded gas is $3.19 a gallon at some stations with other stations offering gas at $3.29 a gallon.

Tucson motorists enjoy the lowest fuel prices at $3.137 per gallon

In Flagstaff, though, motorists there are paying a high price for gas at $3.356 per gallon, the AAA said.

The national average is $3.267 a gallon.

√ Last week’s retreat in crude prices reversed this week as a result of news reports that crude pipelines in Basra, where much of Iraq’s oil is located, have incurred damage as a result of violence in the war-torn country, AAA said.

 Although the severity of the damage and estimated time of repair has not yet been revealed, crude surged to over $107 per barrel after reports of the pipeline damage surfaced.

Also supporting crude’s price reversal, this week, the Department of Energy (DOE) reported lower than expected fuel inventories. However, it is important to note that the agency also reported a drop in refinery activity and current gasoline inventories are nine percent higher than year ago averages, AAA said.

√ “Speculation has surfaced on whether refineries are cutting fuel production as a result of weak demand and or to increase their profit margins,” said Linda Gorman, public affairs manager for AAA Arizona. “However, the market is really all about crude right now, with high crude prices causing most of the gas spikes we’ve seen all winter and the start of the spring.  That being said, AAA strongly discourages any attempt by the industry to keep prices artificially high at the expense of consumers’ pocketbooks.

 “At a time when consumers are paying record high gas prices amidst a battered economy, this would only add insult to injury.  This is yet another example of why AAA calls on congressional leaders and presidential candidates to develop a comprehensive energy plan that will curb our reliance on oil.”

The cheapest gasoline in the continental United States is in New Jersey, where unleaded regular is $3.045 per gallon. California drivers continue to pay the most for fuel in the country at $3.624 per gallon.

Motorists can visit www.AAAAZ.com/news for the latest fuel price information and gas saving tips and go to www.AAA.com/fuelfinder to locate the station with the cheapest gas in their neighborhood or along their commute route.  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. AAA members who use their AAA Visa credit card can get a rebate of up to five percent on gasoline purchases made at the pump. Members can also flash their membership card to save at over 100 of the auto club’s Show Your Card & Save partners.

 

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