Gas Prices Lower since Mid-July, but Oil Price Cause for Concern, Florida AAA Fuel Gauge Report Shows

ORLANDO, Fla.--Aug. 1, 20047, 2004--The national average price of self-serve regular gasoline has fallen 5.5 cents since mid-July to $1.862 per gallon, AAA said today. The lower prices at the pump may be short lived; however, as record high crude oil prices begin exerting upward pressure on fuel costs.

In mid-July, AAA's daily, online Fuel Gauge Report (www.fuelgaugereport.com) recorded a national average price for self-serve regular gasoline of $1.917 per gallon. Crude oil was priced near $40 per barrel during the same period last month. Today's oil price is near $47 per barrel. At current prices oil represents approximately 50 percent of the average retail cost of gasoline.

During the last month prices declined most in New England, down an average of 4.2 cents to $1.924 per gallon. Prices fell 4 cents per gallon in the West to $1.946. In the Mid-Atlantic states, prices dropped 4 cents to average $1.881. Southwest prices are 3.1 cents lower, averaging $1.808. Prices are 2.3 cents lower in the southeast at $1.785. In the Great Lakes region, prices fell an average of 0.9 cents per gallon to average $1.906 per gallon. In the Midwest prices fell an average 1.2 cents per gallon to $1.850.

Nationwide, the price of self-serve, mid-grade averages $1.976 per gallon, a drop of 5.9 cents per gallon since last month, but 28.2 cents per gallon higher than last year. Self-serve premium averages $2.049 per gallon, down 6 cents since mid-July and 30.4 cents higher than one year ago. The price of self-serve regular is 27.5 cents higher than one year ago.

Average regional prices for self-serve regular in mid-August of last year were: West, $1.712; Great Lakes, $1.607; New England, $1.571; Mid-Atlantic, $1.531; Southwest, $1.546; Midwest, $1.586; and Southeast, $1.486.

The national average prices for self-serve regular unleaded gasoline for AAA's mid-August survey for the last five years are: 2003, $1.566; 2002, $1.396; 2001, $1.393; 2000, $1.496; and 1999, 1.255 cents.

AAA's Fuel Gauge Report is based on data from Oil Price Information Service, the nation's most comprehensive source of petroleum pricing information. AAA purchases the data and makes it available free on the Internet as a public service. Average daily prices for the nation, all 50 states and more than 250 localities are available for all grades of gasoline, making the site the most current and complete public source of fuel price information.

As the nation's largest motoring and leisure travel organization, AAA provides more than 47 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at www.aaa.com.