Posts Tagged ‘AAA CEO’

JulieHall

Busy year-end holidays will be marked by more travelers than ever on record

ORLANDO, Fla., (December 16, 2014) – AAA projects 98.6 million Americans will journey 50 miles or more from home during the year-end holiday season, an increase of four percent from the 94.8 million people who traveled last year. This upward trend marks the highest forecast growth rate for the year-end holiday season since 2009 and the highest travel volume for the holiday period on record. (AAA data dates back to 2001.) The year-end holiday period is defined as Tuesday, December 23 to Sunday, January 4.

Highlights from 2014/2015 Year-End Holiday Travel Forecast:

  • Holiday travel is expected to total 98.6 million, an increase of four percent from the 94.8 million who traveled last year.
  • Travel volume for the year-end holidays will reach the highest peak recorded by AAA (since 2001).
  • Nearly 91 percent of all travelers (89.5 million) will celebrate the holidays with a road trip, an increase of 4.2 percent from 2013.
  • Air travel is forecast to grow one percent from 2013, with 5.7 million travelers taking to the skies.
  • Low gas prices continue to help boost disposable income this holiday season, with today’s national average price of gas at $2.53 per gallon, 70 cents less than a year ago.

Additional Resources

“’Tis the season for holiday travel, and this year more Americans will join with friends and family to celebrate the holidays and ring in the New Year than ever before,” said Marshall L. Doney, AAA President and Chief Operating Officer. “While the economy continues to improve at an uneven pace, it seems more Americans are looking forward with increasing consumer confidence, rather than looking back at the recession. This is helping to drive expected travel volumes to the highest level we have seen for the year-end holidays.”

“Lower gas prices are filling stockings with a little more cash to spend on travel this year as travelers are expected to pay the lowest prices since 2009,” continued Doney. “Lower prices are increasing disposable income and enabling families to set aside money for travel this year.”

The calendar is having a positive effect on the number of travelers expected this year. This year the holidays land on a Thursday, creating a holiday travel season that is one day longer than last year’s and the longest since 2008, offering travelers more options for departures and return trips. This flexibility makes it possible for more people to fit holiday travel into their schedules.

With more than 90 percent of holiday travelers driving to their destinations, AAA urges everyone on the road to be extra diligent about the dangers of impaired driving. According to the latest data from the AAA Foundation for Traffic Safety’s annual Traffic Safety Culture Index, one in eight of all licensed drivers who drink at least occasionally reported having driven when they thought their alcohol level might have been close to, or possibly over, the legal limit in the past year.

The survey also reveals 91 percent of drivers consider impaired driving to be unacceptable, with 42 percent reporting that drunk drivers are a bigger problem today versus three years ago.  “Despite the ubiquitous warnings about drinking and driving, especially during the holiday season, an average of one alcohol-impaired driving death occurs every 45 minutes,” said Doney.

AAA works year-round to educate motorists about driving practices that will help keep them safe and reduce traffic-related crashes and injuries.  PreventDUI.AAA.com is an online resource offering impaired driving facts, transportation alternatives and expert advice.

Impact of gasoline prices on travel plans

Today’s national average price of gasoline is at the lowest level in five years and 70 cents lower than last year, a welcome gift for holiday travelers. Gas prices have fallen for 82 days in a row, helping to increase Americans’ disposable income 3.5 percent from year-ago levels, which has had a positive effect on travel.

Hotel, car rental rates rise modestly

According to AAA’s Leisure Travel Index, hotel rates for AAA Three Diamond lodgings are expected to increase four percent from one year ago with travelers spending an average of $143 per night compared to $138 last year. The average hotel rate for AAA Two Diamond hotels has risen five percent with an average cost of $108 per night. Daily car rental rates will average $66, four percent higher than last year.

Airfares fall seven percent this year, driven by low-cost carriers

Average discounted round-trip airfares across 40 top domestic routes are expected to fall seven percent this year, to $186. This is influenced by the availability of discounted rates from low-cost carriers in several top markets. AAA encourages travelers to consider the full cost of a ticket when purchasing air travel, as many airlines charge ancillary fees for checked bags, meals, priority boarding and seat assignments.

AAA expects to rescue 1.1 million motorists this holiday season

Between December 23 and January 4, AAA expects to come to the rescue of more than 1.1 million motorists with the primary reasons for breakdowns being dead batteries, flat tires and lockouts. AAA recommends motorists check battery and tire condition and prepare vehicles for winter driving before heading out on a holiday getaway. Car care tips and information are available at AAA.com.

AAA offers travel planning resources

AAA’s digital tools for travel planning on the go include the free AAA Mobile app for iPhone, iPad and Android. Travelers can use the app to map a route, find current gas prices and discounts, book a hotel and access AAA roadside assistance. Travelers can learn more at AAA.com/mobile.

On AAA.com, travelers can find more than 58,000 AAA Approved and Diamond Rated hotels and restaurants using the TripTik Travel Planner or the searchable Travel Guides at AAA.com/Travel. Every AAA Approved establishment offers the assurance of acceptable cleanliness, comfort and hospitality, and ratings of One to Five Diamonds help travelers find the right match for amenities and services.

AAA’s collection of downloadable eTourBook guides for tablets and smartphones is available free to members at AAA.com/ebooks. Choose from 101 top North American destinations including city titles, like the award-winning Las Vegas, and regions like Wine Country and national parks.

AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Colorado-based business information provider teamed with AAA in 2009 to jointly analyze travel trends during the major holidays. AAA has been reporting on holiday travel trends for more than two decades. The complete AAA/IHS Global Insight 2014 Year-End Travel Forecast can be found here.

As North America’s largest motoring and leisure travel organization, AAA provides more than 54 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 AAA.com. For more information about AAA Travel, visit AAA.com/Travel.

 

Pump Prices Likely Below $2.50 by Christmas

December 15th, 2014 by admin

Michael Green Contact Tile(WASHINGTON, December 15, 2014) Holiday cheer has come early for the motoring public, with the average for retail gasoline at its lowest level in more than five years. Today’s national average price for regular unleaded gasoline is $2.55 per gallon. The average price at the pump is more than a dime (-12 cents) less than one week ago and more than a quarter (-36 cents) less than a month ago. The national average is down 69 cents from this same date last year and has now dropped on 81 consecutive days for a total of 80 cents during this stretch. Motorists are paying $1.15 less than the peak 2014 price, which was $3.70 on April 8. AAA estimates drivers are saving more than $400 million dollars each day compared to the high prices paid earlier this year.

 Avg-Gas-Prices-2011-2014

The average price at the pump has fallen nearly 25 percent since the start of the year, and if the global price of crude continues to register new multiyear lows, these lower prices are likely to persist. Barring any unexpected spikes in global prices, or declines in domestic production, the price at the pump should remain relatively low approaching the New Year and into 2015.

Every state in the continental United States is posting an average price below the $3.00 per gallon benchmark. Hawaii ($3.70) and Alaska ($3.39), as is often the case, are the nation’s most expensive markets for retail gasoline and of the lower 48 states drivers in the northeast are paying the most per gallon:  New York ($2.98), Connecticut ($2.90) and Washington, D.C. ($2.90). The nation’s least expensive markets are the Midwestern states of Missouri ($2.25) and Oklahoma ($2.29), closely followed by the Gulf Coast states of Texas ($2.33) and Mississippi ($2.33).

 10-least-Expensive-Avg-Gas-Prices-12-15-14

The impact of falling global oil prices for consumers is abundantly clear in the retail gasoline market with prices lower nationwide on the week, month and year. The price at the pump is down by a nickel or more week-over-week in every state and Washington, D.C. Forty-one states are registering savings of a dime or more, and the most dramatic savings are in Idaho (-22 cents), Michigan (-20 cents), Ohio (-19 cents) and Indiana (-19 cents). Drivers in Michigan (-56 cents), Idaho (-54 cents) Indiana (-51 cents) and South Dakota (-50 cents) are saving the most on a month-over-month basis. The price in every state has dropped by twenty cents or more during this span.

Yearly comparisons continue to reflect even more extreme discounts at the pump, largely due to the price of crude setting new multi-year lows.  With the exception of Hawaii (-22 cents) and Alaska (-29 cents), the price at the pump is down in every state and Washington, D.C. by more than 35 cents versus this same date last year. Forty-two states are posting a discount of 50 cents or more per gallon year-over-year and drivers in 20 states are saving 70 cents or more. The largest savings are in Florida (-80 cents), Maine (-79 cents) and Kentucky (-79 cents).

 Top10-Weekly-Savings-12-15-14

Concerns of sluggish global oil demand combined with abundant supply continue to leave global oil markets searching for a bottom. Just two months ago market watchers were divided on the likelihood that the prices of West Texas Intermediate (WTI) would fall below $80 per barrel. Last week, for the first time since 2009, the price of WTI dropped below $60. WTI is now approximately 40 percent cheaper than the start of the year and nearly 50 percent below the high in June ($107.26). The Organization of Petroleum Exporting Countries (OPEC) continues to maintain production levels, and the cartel’s three biggest members are reportedly ramping up exports to Asia in an effort to sustain market share in that region. Reductions in global oil prices have ultimately meant a welcome savings at the pump for motorists; however sustained low prices could impact U.S. production, which is more expensive than its global counterparts. Market watchers are also beginning to consider the potential for geopolitical instability in countries that are heavily dependent on oil exports to balance their budgets, including Venezuela and Nigeria. WTI was down $2.14 to settle at $57.81 per barrel on Friday at the close of formal trading on the NYMEX.

Heather HunterNearly 30 percent of Americans expected to take a trip this holiday season

ORLANDO, Fla., (Dec. 17, 2013)AAA projects 94.5 million Americans will journey 50 miles or more from home during the year-end holiday season, an increase of 0.6 percent from the 94 million people who traveled last year. This upward trend marks the fifth consecutive year of increases and the highest travel volume recorded for the season. The year-end holiday period is defined as Saturday, December 21 to Wednesday, January 1.

Highlights from this year’s 2013/2014 AAA Year-End Holidays Travel Forecast include:

  • Holiday travel to total 94.5 million, an increase of 0.6 percent from the 94 million who traveled last year.
  • Year-end holiday travel is expected to increase for the fifth consecutive year, reaching a new high since data has been collected by AAA.
  • Ninety-one percent of travelers or 85.8 million to travel by automobile, an increase of 0.9 percent.
  • Nearly 30 percent (29.7) of all Americans will take a trip this holiday, with more than one in four (27 percent) taking a road trip.
  • Holiday air travel is expected to decline slightly to 5.53 million travelers from 5.61 last year.
  • Median spending expected to increase slightly to $765, compared to $759 last year.

Additional Resources

“While economic growth has stagnated and consumer confidence has fallen Americans will not be Scrooges when it comes to traveling this year,” said AAA Chief Operating Officer Marshall L. Doney. “AAA is projecting more Americans to travel than ever before to gather with friends and family, exchange presents and ring in the New Year.”

Only once in the past decade has there been a change in travel volume greater than five percent and that was a decline in 2007 as the recession was just getting started. “Of all the travel holidays, the year-end holiday season remains the least volatile as Americans will not let economic conditions dictate their travel plans to celebrate the holidays,” said Doney.

The overall economic picture remains in the stagnant state that has been present throughout the year. Following the October shutdown and the agreement to temporarily suspend the debt ceiling, the mood of the consumer remains cautious.  The unemployment rate has improved from one year ago, but overall employment levels remain low. Weak economic factors are reflected in all three major measures of consumer optimism which are now below year ago levels.

While key economic factors remain similar to the Thanksgiving period, the calendar is having a positive impact on travel. When the holiday falls on a Wednesday travelers have more flexibility with their travel plans and the option to start their trip earlier or extend through the following weekend. This calendar effect will help spur an increase in holiday travel this year.

With nine in ten holiday travelers driving to their destinations, AAA makes a timely appeal to everyone on the road to be extra diligent about the dangers of impaired driving particularly when holiday partygoers may risk getting behind the wheel after a festive evening.

According to the latest data from the AAA Foundation for Traffic Safety’s annual Traffic Safety Culture Index, one in five of all licensed drivers, that drink at least occasionally, reported having driven when they thought their alcohol level might have been close to, or possibly over, the legal limit in the past year.  The survey also reveals that 96 percent of drivers consider impaired driving to be unacceptable, with 50 percent reporting that drunk drivers are a bigger problem today versus three years ago.  “Despite the ubiquitous warnings about drinking and driving especially during the holiday season, alcohol-related crashes still represent one in three motor vehicle deaths,” said Doney.

AAA works year round to educate motorists about driving practices that will help keep them safe and reduce traffic-related crashes and the injuries that can result.  PreventDUI.AAA.com is an online resource offering impaired driving facts, transportation alternatives and expert advice.

AAA expects to rescue 3.76 million motorists during the holiday season

Between December 21 and January 1, AAA expects to come to the rescue of 3.76 million motorists with the primary reasons for breakdowns being dead batteries, flat tires and lockouts. AAA recommends motorists check battery and tire condition and prepare vehicles for winter driving before heading out on a holiday getaway. Car care tips and information are available at AAA.com.

Impact of gasoline prices on travel plans

Gas prices have climbed slightly from the multi-year low of $3.18 per gallon on November 12, but AAA expects most drivers will pay less than a year ago to fill up during the holiday season. Gas prices recently increased because of planned and unplanned maintenance at a number of refineries and seasonally stronger demand for gasoline. Prices should decline by the end of the year due to rising supplies and increased refinery production.

Automobile travel remains dominant mode of transportation, air travel decreases

Approximately 91 percent of travelers or 85.8 million people plan to travel by automobile during the year-end holidays. This is a 0.9 percent increase over the 85.1 million people who traveled by auto last year.  Air travel is expected to decrease 1.4 percent as 5.53 million holiday travelers will take to the skies.

Those traveling by air will find airfares slightly lower than last year according to AAA’s Leisure travel Index.  During Christmas week the average lowest round-trip rate is $199 for the top 40 U.S. air routes compared to $204 last year. Approximately 3.13 million travelers will choose other modes of transportation, including rail, bus and cruise ship.

Hotel rates relatively flat, car rental rates increase 13 percent

According to AAA’s Leisure Travel Index, hotel rates for AAA Three Diamond lodgings are expected to average $138 per night compared to $142 last year. Travelers planning to stay at AAA Two Diamond hotels can expect to pay an average cost of $102 per night, compared to $101 in 2012.  Weekend daily car rental rates will average $63, compared to $55 last year.

Average travel distance increases

According to the survey of intended travelers, the average distance traveled is expected to be 805 miles, which is an increase of 45 miles from last year when travelers logged 760 miles.

Median spending increases slightly; visiting family, dining and shopping top activities

Median spending is expected to be $765 up from $759 last year. Visiting with friends and family (74 percent), Dining (70 percent) and shopping (51 percent) will be the most popular activities.

AAA offers digital travel planning resources

AAA’s digital tools for travel planning ‘on the go’ include eTourBook guides for tablets and smartphones, available free to members at AAA.com/ebooks. Choose from 101 top North American destinations including city titles, like the award-winning Las Vegas, regions, like Wine Country, and National Parks.

The free AAA Mobile app for iPhone, iPad and Android uses GPS navigation to help travelers map a route, find current gas prices and discounts, book a hotel, and access AAA roadside assistance. Members using the iPad version can access interactive Top Destinations travel guides for popular cities. Travelers can learn more at AAA.com/mobile.

On AAA.com, travelers can find thousands of AAA Approved and Diamond Rated hotels and restaurants using AAA’s TripTik Travel Planner or the searchable Travel Guides at AAA.com/Travel. Every AAA Approved establishment offers the assurance of acceptable cleanliness, comfort and hospitality, and ratings of One to Five Diamonds help travelers find the right match for amenities and services.

AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Colorado-based business information provider teamed with AAA in 2009 to jointly analyze travel trends during the major holidays. AAA has been reporting on holiday travel trends for more than two decades. The complete AAA / IHS Global Insight Year-End Holidays 2013/2014 Travel Forecast can be found here.

As North America’s largest motoring and leisure travel organization, AAA provides more than 54 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 AAA.com.

Heather Hunter

ORLANDO, Fla., (Nov. 20, 2013)AAA projects 43.4 million Americans will journey 50 miles or more from home during the Thanksgiving holiday weekend, a decrease of 1.5 percent from the 44 million people who traveled last year. This decrease falls just shy of last Thanksgiving’s four-year peak since the recession-driven declines in 2008-2009 when Thanksgiving travel fell by 25 percent. The Thanksgiving holiday travel period is defined as Wednesday, Nov. 27 to Sunday, Dec. 1.

Highlights from this year’s 2013 AAA Thanksgiving Holiday Travel Forecast include:

  • Thanksgiving travelers to total 43.4 million, a decrease of 1.5 percent from the 44 million who traveled last year
  • Ninety percent of travelers or 38.9 million to travel by automobile, a decline of 1.6 percent
  • Median spending expected to drop nearly seven percent to $465, compared to $498 last year.
  • The Thanksgiving holiday is a less expensive holiday for travelers compared to other holidays. This year Labor Day spending was expected to be $804, Independence Day $749 and Memorial Day $659.
  • Holiday air travel to decline 3.7 percent to 3.14 million travelers from 3.26 million in 2012
  • Average distance traveled to increase to 601 miles from 588 miles.
  • The Wednesday before Thanksgiving will be the busiest single day of travel with 37 percent of travelers departing for trips Nov. 27.

Additional Resources

“While the economy continues to improve, the sluggish pace of the recovery is creating uncertainty in the minds of some consumers and therefore AAA is projecting a slight decline in the number of Thanksgiving travelers this year,” said AAA Chief Operating Officer Marshall L. Doney.  “For those traveling the good news is motorists will receive a holiday bonus in the form of lower gas prices which are at their lowest levels for the holiday since 2010.”

“The primary focus of Thanksgiving, more so than any other holiday, is to gather with friends, family and loved ones and celebrate with each other. Travelers attempting to carve out a travel budget will be happy to know that Thanksgiving will be the least expensive holiday of the year,” continued Doney.

Impact of gasoline prices on travel plans

AAA estimates that most drivers will pay the cheapest gas prices for the Thanksgiving holiday since 2010. The national average is at the cheapest level of the year and should continue to drop in the weeks ahead. Drivers can find stations selling gas for less than $3.00 per gallon in the vast majority of states. The decreased cost of gas will provide consumers with real savings that could be used for other purposes on the trip.

Wednesday before the holiday will be busiest travel day

The Thanksgiving holiday is unique falling on a Thursday every year. Many people are off from work the Friday after; giving travelers more time to spend with family and friends.   AAA asked intended travelers which days they would depart for and return from Thanksgiving travel. Among those surveyed, the highest volumes of travelers plan to leave for their trip the Wednesday before the holiday (37 percent) and return the following Sunday (33 percent) with another 24 percent expecting to return on Monday, Dec 2 or later.

Automobile travel remains dominant mode of transportation, air travel decreases

Approximately 90 percent of travelers or 38.9 million people plan to travel by automobile this Thanksgiving. This is a 1.6 percent decrease over the 39.5 million people who traveled by auto last year.  Air travel is expected to decrease 3.7 percent as 3.14 million holiday travelers will take to the skies.

Those traveling by air will find airfares comparable to last year according to AAA’s Leisure travel Index.  For the Thanksgiving holiday the average lowest round-trip rate is $187 for the top 40 U.S. air routes compared to $188 last year. Approximately 1.4 million travelers will choose other modes of transportation, including rail, bus and cruise ship.

Hotel rates relatively flat, car rental rates increase six percent

According to AAA’s Leisure Travel Index, Thanksgiving holiday hotel rates for AAA Three Diamond lodgings are expected to average $142 per night compared to $143 last year. Travelers planning to stay at AAA Two Diamond hotels can expect to pay an average cost of $105 per night, compared to $104 in 2012.  Weekend daily car rental rates will average $50, compared to $47 last year.

Average travel distance increases

According to the survey of intended travelers, the average distance traveled by Americans during the Thanksgiving holiday weekend is expected to be 601 miles, which is an increase of 2.2 percent from last year when travelers planned to log 588 miles.

Median spending down almost seven percent; visiting family, dining and shopping top activities

Median spending is expected to be $465, a 6.6 percent decrease compared to the expected median spending of intended holiday travelers ($498) in 2012.

While spending time with friends and relatives and dining are primary activities for nearly all holidays, it is even more relevant for Thanksgiving travelers. Therefore it is not surprising that spending time with family and friends (67 percent) and dining (56 percent) are the most popular activities planned by travelers. Despite lower median spending, nearly half of all travelers (44 percent) plan to shop during the holiday which can be expected given Black Friday occurs during the holiday weekend.

AAA offers digital travel planning resources

AAA’s digital tools for travel planning ‘on the go’ include eTourBook guides for tablets and smartphones, available free to members at AAA.com/ebooks. Choose from 101 top North American destinations including city titles, like the award-winning Las Vegas, regions, like Wine Country, and National Parks.

The free AAA Mobile app for iPhone, iPad and Android uses GPS navigation to help travelers map a route, find current gas prices and discounts, book a hotel, and access AAA roadside assistance. Members using the iPad version can access interactive Top Destinations travel guides for popular cities. Travelers can learn more at AAA.com/mobile.

On AAA.com, travelers can find thousands of AAA Approved and Diamond Rated hotels and restaurants using AAA’s TripTik Travel Planner or the searchable Travel Guides at AAA.com/Travel. Every AAA Approved establishment offers the assurance of acceptable cleanliness, comfort and hospitality, and ratings of One to Five Diamonds help travelers find the right match for amenities and services.

AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Colorado-based business information provider teamed with AAA in 2009 to jointly analyze travel trends during the major holidays. AAA has been reporting on holiday travel trends for more than two decades. The complete AAA / IHS Global Insight Labor Day 2013 Forecast can be found here.

As North America’s largest motoring and leisure travel organization, AAA provides more than 54 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 AAA.com.

Heather Hunter

2013 AAA THANKSGIVING HOLIDAY TRAVEL FORECAST

NEWS CONFERENCE NOVEMBER 20, 2013

WHAT:AAA will release its annual Thanksgiving Holiday Travel Forecast during a news conference at Ronald Reagan Washington National Airport on Wednesday, Nov. 20, 2013.

  • How will the current state of the economy affect travel during the Thanksgiving holiday weekend?
  • How many people will travel and what mode of transportation will they use?
  • What will be the busiest days in the air and on the roadways?
  • Will fuel prices have an impact on Americans traveling during the holiday?
  • Are costs for hotel rooms, rental cars and airline tickets up or down?
  • How much will travelers spend and how far will they travel?
WHO:Marshall L. Doney, Senior Executive Vice President and Chief Operating Officer, AAA
WHEN:Wednesday, Nov. 20, 2013 10:00 a.m. EST
WHERE:Ronald Reagan Washington National Airport, Upper Concourse, Door 6, at north end of Terminal C

(Adjacent to the glass wall where the media outlets are located)

Please contact the Metropolitan Washington Airports Authority Public Affairs Office at (703) 417-8370 to make arrangements for parking live media trucks. All other vehicles must park in the garages or economy lot.

 

Michael Green

(WASHINGTON, November 15, 2013) “The EPA’s proposal to decrease ethanol requirements will help drivers by preventing a surge in gas prices or the premature expansion of E15 gasoline sales. While we would like to increase the use of alternative fuels, it is a plain fact that the Renewable Fuels Standard’s original targets are unreachable without putting motorists and their vehicles at risk.

“The EPA has finally put consumers first. Their proposal will support the continued development of alternative fuels, while also recognizing the needs of the millions of people that drive every day. Today’s proposal is an important step in the right direction, but it does not go far enough. Suggesting a range for 2014 targets does not guarantee that motorists will be protected from the risk of higher ethanol blends. We encourage the EPA to act quickly to finalize specific targets that help protect drivers nationwide.

“The vast majority of cars on the roads today are not designed to run on gasoline containing more than 10 percent ethanol. While ethanol has the potential to support the economy and reduce the reliance on fossil fuels, it is irresponsible to mandate more ethanol than cars can safely use.”

More than 90 percent of the vehicles on the road today are not approved by manufacturers to use E15, including most 2001-2013 models. E15 is only approved for use by automakers in flex-fuel engines, 2001 and newer Porsches, and selected 2012 and newer vehicles where it is clearly specified in the owner’s manual. While new models increasingly can use E15 gasoline, previous makes and models were never designed to use the fuel. It will still take at least another decade before the bulk of the fleet will be E15 compatible given that the average vehicle remains in use for more than 11 years.

 

Michael Green Contact TileBob Darbelnet Will Testify Regarding E15 Gasoline to Congressional Subcommittee

Additional Resources

WASHINGTON, D.C. (July 23, 2013) – AAA President & CEO Bob Darbelnet will testify today to a Congressional subcommittee that the EPA should consider whether target volumes to the Renewable Fuels Standard can be met without putting consumers at risk.

“I would urge Congress to keep American consumers front of mind when reviewing the RFS requirements for 2014,” continued Darbelnet.  “If the only way to meet the RFS requirement is to introduce E15 gasoline before consumers are educated and consensus is reached on which vehicles can safely use the fuel, then the RFS should be modified.”

The House Committee on Energy and Commerce’s Subcommittee on Energy and Power is conducting the hearing to examine the Renewable Fuels Standard, a program created under the Energy Policy Act of 2005 to establish a renewable fuel volume mandate. AAA has urged regulators and the industry to stop the sale of E15 gasoline until motorists are better protected due to the strong likelihood of consumer confusion and the potential for voided warranties and vehicle damage.

“The number of states where E15 is sold has doubled in recent months despite continuing evidence that drivers are not aware of the fuel and could be unknowingly putting their cars in jeopardy,” continued Darbelnet. “AAA is not opposed to either ethanol or the RFS, but we remain very concerned with the way that E15 has been brought to market and is being sold to consumers.”

The subcommittee hearing is scheduled for July 23 at 10:00 AM in 2123 Rayburn House Office Building.

AAA believes that ethanol-blended fuels have the potential to provide motorists a clear choice at the pump that supports jobs, promotes energy independence and reduces fuel costs.  Both E10 and E85 provide options for consumers at this point, and AAA would support a motorists’ right to choose E15 once basic thresholds have been met regarding consumer protections. More than 95 percent of the gasoline sold in the United States is E10, which contains up to 10 percent ethanol. E85, which contains up to 85 percent ethanol, is designed for use by flex-fuel vehicles.

A AAA survey last fall found that only 12 million out of the 240 million light-duty vehicles on the roads were approved by manufacturers to use E15. Thirteen manufacturers stated that the use of E15 may void warranty coverage. AAA’s automotive engineering experts believe that sustained use of E15 could result in costly problems such as accelerated engine wear and failure, fuel-system damage and false “check engine” lights in some cars. An overwhelming 95 percent of consumers surveyed by AAA were not familiar with E15, indicating a strong likelihood of consumer confusion leading to misfueling.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 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 AAA.com.

Michael Green Contact Tile(WASHINGTON, July 16, 2013) AAA’s Chris Plaushin (director, federal relations) is testifying before the Senate Energy and Natural Resources Committee today during a hearing “to explore the effects of ongoing changes in domestic oil production, refining and distribution on U.S. gasoline and fuel prices.” Chris Plaushin’s testimony is available here.

Michael Green Contact TileHearing to highlight need for consumer protections, education and additional research on E15

WASHINGTON, D.C. (Feb. 26, 2013) – AAA President & CEO Robert L. Darbelnet will testify today before the House Committee on Science, Space and Technology’s Subcommittee on Environment that regulators and industry should suspend the sale of E15 gasoline until motorists are better protected. AAA will highlight the inadequate consumer protections and education efforts to date and will express support for additional testing by the National Academy of Sciences.

“Congress’ decision to examine potential problems associated with the sale of E15 is encouraging news for motorists,” said Darbelnet. “Most drivers are unaware of the potentially harmful effects of E15 and have not been properly educated about this new fuel entering the market.”

Additional Resources

  • Click here to listen to a AAA interview with Robert L. Darbelnet on E15

The hearing will examine the Environmental Protection Agency’s recent decision to allow the sale of E15, a blend of gasoline containing up to 15 percent ethanol. The subcommittee scheduled the hearing partly in response to AAA’s recent findings that E15 may cause consumer confusion, void warranties and contribute to vehicle damage.

“AAA is not opposed to ethanol, but we are against the way E15 has been introduced and sold to consumers,” continued Darbelnet. “We welcome the committee’s support today as AAA calls for additional impartial research and for regulators and industry to suspend the sale of E15 gasoline until motorists are properly educated and protected.”

The subcommittee hearing, “Mid-Level Ethanol Blends: Consumer and Technical Research Needs,” is scheduled for Feb. 26 at 2:00 PM EST in 2318 Rayburn House Office Building.

A AAA survey last fall found that only 12 million out of the 240 million light-duty vehicles on the roads today are approved by manufacturers to use E15. Five manufacturers stated their warranties would not cover fuel-related claims caused by E15, and eight additional manufacturers stated that E15 did not comply with fuel requirements in owners’ manuals and may void warranty coverage.

AAA’s automotive engineering experts believe that sustained use of E15 could result in costly problems such as accelerated engine wear and failure, fuel-system damage and false “check engine” lights in some cars. An overwhelming 95 percent of consumers surveyed by AAA were not familiar with E15, indicating a strong likelihood of consumer confusion leading to misfueling.

Both E10 and E85 provide options for consumers at this point. Ethanol-blended fuels have the potential to support American jobs, promote American energy independence and save Americans money. More than 95 percent of the gasoline sold in the United States is E10, which contains up to 10 percent ethanol. E85, which contains up to 85 percent ethanol, is designed for use by flex-fuel vehicles.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 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 AAA.com.

AAA Predicts Gasoline to Cost Less in 2013

January 8th, 2013 by admin

National Average Expected to Peak at $3.60-$3.80 Per Gallon This Year 

WASHINGTON, D.C., (January 8, 2013) – Gasoline prices this year will be less expensive than in 2012 as a result of increased domestic oil production and lower demand, according to AAA. The national average price of gasoline should peak at $3.60-$3.80 per gallon barring any significant unanticipated events, which compares to a peak of $3.94 a gallon in 2012.

“Cheaper gas prices are good news for the millions of Americans that depend on their car to travel where they need to go,” said AAA President and CEO Robert Darbelnet. “Lower gasoline prices should translate into billions of dollars in tangible household savings given that the vast majority of Americans rely on automobiles to live their lives.”

Gasoline prices should rise steadily through April or early May, but at a slower pace than last year. As is typical for this time of year, prices will rise as a result of seasonal demand increases and in anticipation of the switchover to more expensive summer-blend gasoline. Following a late-spring peak, prices should drop during the first half of the summer to as low as $3.20-$3.40 per gallon before rising again in advance of the Gulf Coast hurricane season and the switchover to winter-blend gasoline. Prices should end the year by falling to low or near-low averages for 2013.

“Absent significant storms, majors wars or production and distribution outages, the single largest factor that will influence gasoline prices in 2013 will be the strength of the U.S. economy,” continued Darbelnet. “Stronger than expected growth in the economy would result in higher oil and gasoline prices in anticipation of higher consumption, while a weaker than expected economy would drive prices downwards. Inaction by Congress to reach a debt deal in two months also would result in increased concern about the U.S. economy and could lead to lower gasoline prices.”

Today’s national average price of gasoline is $3.30 per gallon, which is seven cents less than last year and five cents less than a month ago. Motorists in 39 states today are paying lower average gasoline prices than a year ago. States paying more than last year are located primarily in the Northeast, which is still dealing with the supply aftereffects of Hurricane Sandy. The average price of gasoline today is below $3.00 per gallon in six states including Colo., Idaho, Minn., Okla., Utah and Wyo.. The only state paying more than $4.00 per gallon is Hawaii.

The annual average price of gasoline in 2012 was the most expensive on record at $3.60 per gallon, but the situation for motorists is already improving. On Jan. 5, the national daily average dropped below the year-ago price for the first time since August 20, which means motorists are now paying less for gasoline than last year – a trend that AAA believes is likely to continue.

Gasoline prices in 2012 reached record highs partly as a result of unanticipated production disruptions from refinery fires, pipeline closures and major hurricanes. Oil prices also were higher as a result of tensions in the Middle East including new sanctions on Iran. These types of market-moving events are impossible to predict and any forecast on gasoline prices can change as a result of similar factors.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 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 AAA.com.

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