AAA Says Gas Prices Racing Higher as Demand, Oil Price and Global Tension Mount

ORLANDO, Fla.--April 11, 2006--Average gasoline prices are nearly 40 cents higher than one year ago today with self-serve, regular gasoline now costing an average of $2.687 per gallon, AAA's daily, online Fuel Gauge Report (http://www.aaafuelgaugereport.com) shows.

AAA, the nation's largest organization for motorists, said prices are being driven higher by increasing tension between the United States and Iran, rising demand for gasoline in the United States and a domestic refining industry that has been falling behind in rebuilding depleted gasoline inventories.

AAA said tensions between Iran and the United States are pushing oil prices higher, even as demand for gasoline in the United States is continuing to rise by a slight 1.5 percent over last year. Adding more upward pressure to pump prices are U.S. refineries that appear to be having a difficult time managing a switch from fuel blended with MTBE to gasoline combined with ethanol. This is evidenced by several weeks of declines in U.S. gasoline inventories as reported by the U.S. Department of Energy.

According to AAA, Hawaii has the highest average gas price in the nation at $2.969 per gallon. Washington, D.C. and California have the next highest average prices at $2.866 per gallon and $2.86 per gallon; respectively.

The lowest state-wide average gasoline price in the nation is in Utah at $2.339 per gallon. Wyoming has the next lowest average price at $2.372 per gallon, and Idaho has the third lowest price at $2.382 per gallon.

Nationwide, the price of self-serve, mid-grade gasoline averages $2.853 per gallon, an increase from $2.506 per gallon in the middle of last month, and up from $2.416 one year ago. Self-serve premium averages $2.995 per gallon, up from $2.597 per gallon one month ago, and up from $2.504 one year ago.

The national average prices for self-serve regular unleaded gasoline for AAA's mid-April survey for the last five years are: 2005, $2.360; 2004, $1.78; 2003, $1.595; 2002, $1.411; and 2001, $1.587.

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 nearly 49 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 http://www.aaa.com.