Phoenix, July 5, 2012. Arizonans continue to experience decreases at the pump as the Independence Day holiday week comes to a close. Statewide, the price of fuel shed 6.5 cents to $3.402 per gallon. Nationwide the pump price average is $3.338, a drop of 3.1 cents from last week.

After plunging below $80 per barrel two weeks ago, this week, news of a deal to help keep European economies stable and reignited tensions in Iran led to crude prices surging nearly $10 per barrel. Because the price of crude oil makes up more than 70 percent of the cost of gasoline, the commodity’s surge placed upward pressure on wholesale gasoline prices.

“Pump prices in some parts of the country have begun to tighten in response to increased crude costs, which is reflected in the national average,” said Linda Gorman, director of communications and public affairs for AAA Arizona. “The effect on our state’s prices has yet to be seen, however should crude and wholesale prices remain elevated or further escalate, Arizona pump prices will inevitably follow suit.”
 

Tucson and Flagstaff hold the low and high state fuel averages at $3.316 and $3.612 per gallon, respectively. South Carolina and California hold the low and high price extremes for the lower 48 states at $2.923 and $3.731 per gallon, respectively.

Motorists can have a chance at fueling their gas budgets for free by entering the AAA Insurance gas sweepstakes. By requesting a no-obligation insurance quote, participants will be entered to win a year’s supply of gas. Each contestant will also be entered to win a $500 gas card. Get your auto insurance quote online, visit your nearest AAA branch, or call toll-free 1-866-298-1232 by Sept. 15 for a chance to win.

As an advocacy organization representing the motoring public, AAA offers a variety of free resources to help motorists keep fuel budgets in check, including: 

• Fuel Price Finder (AAA.com/fuelfinder) locates the lowest fuel price in your area.
• AAA Gas Price Alerts (AAA.com/gasalerts) offers users weekly fuel price text alerts.
• Fuel Cost Calculator (FuelCostCalculator.AAA.com) helps budget travel expenses.
• AAA Mobile (AAA.com/mobile) provides directions and plots fuel prices along your travel route.
• AAA's Member Rewards Visa® Credit Card (AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases.

*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. The BTU-adjusted price is calculated and displayed as part of AAA's Fuel Gauge Report because according to the Energy Information Administration, E-85 delivers about 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’s Fuel Gauge Report includes data from gasoline stations in every Arizona community. Local prices in some communities might be higher or lower than the averages shown here. This service is updated daily by the Oil Price Information Service (OPIS) with average national, state and local prices for gasoline, diesel and E-85. Every day, more than 100,000 stations are surveyed in cooperation with Wright Express for unmatched statistical reliability.