Even as technology advances, motorists identify range anxiety and lack of charging locations as top reasons to not drive electric

ORLANDO, Fla., (May 9, 2013) – The number of electric vehicle charging station locations has increased 959 percent since the debut of the Nissan Leaf in 2010. Despite that, eight out of ten U.S. adults are unsure about or unlikely to buy an electric vehicle (EV) and 30 percent of them say it is due to mileage limitations and availability of charging stations locations, according to a survey by AAA.

“There have been major advancements in electric vehicle technology and the supporting infrastructure,” said John Nielsen, AAA Managing Director of Automotive Engineering and Repair, “However, it will take time and education for the general motoring public to understand just how far these vehicles have come, and recognize the many resources available to those who drive them.”

Modern EVs typically have a range of 60-100 miles, more than enough for the average driver’s daily commute which the U.S. Department of Transportation says is around 16 miles one way. As to recharging, the U.S. Department of Energy reports there are now more than 5,800 charging stations available for public use. The agency has aggressively promoted expansion of the electric vehicle charging infrastructure using funds from the American Recovery and Reinvestment Act.

Additional findings from the AAA survey, fielded in July 2012, show that 26 percent of U.S. adults who are unsure about or unlikely to buy an electric vehicle (EV) cite the higher cost in general of an electric vehicle (i.e. buying, maintaining) as a reason they would be unlikely/undecided to make such a purchase.   “Battery improvements, increased competition, and economies of scale are all likely to drive down costs associated with buying an EV,” Nielsen continued. “With no need to change oil or filters and less brake system wear and tear, maintaining an EV is actually more affordable than a conventional vehicle.”

As joint efforts by government, private groups, and the automotive industry bring the charging picture into focus, AAA’s commitment to meeting member’s needs continues through electric vehicle roadside assistance. In 2011, AAA facilitated an extensive electric vehicle charging research and development program to help test EV charging as a roadside solution. AAA’s specially equipped road service trucks – capable of providing EV charging in approximately 15 minutes for about 10 miles of driving – are currently being tested in select markets across the country. The trucks can also provide traditional roadside services to members with any type of vehicle.

Working with the Electric Drive Transportation Association, AAA recently added EV content to their public information website, AAA Exchange. The new content provides basic information about electric vehicles that will help motorists determine whether an electric vehicle might be right for them. The materials also examine the various types of electric vehicles available, and help consumers understand the important differences that come with owning and operating an electric car.

Electric vehicle drivers looking for a public charging station in their area can consult the online AAA TripTik Travel Planner or the AAA Mobile application for smartphones. About 400 EV charging stations are located at AAA/CAA Approved hotels, restaurants and attractions. A green “plug” icon accompanies listings for these establishments in club-customizable AAA.com Travel Guides and 2013 Tour Book guides, which also denote stations available at AAA club offices.

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.

Additional Resources

• AAA’s Gas Saving Tips

(WASHINGTON, February 28, 2013)

Highest Increase in Gas Prices to Begin Year on Record

• The national average price of gasoline has increased 49 cents per gallon since the beginning of the year, which is the highest price increase through the end of February on record. Gas prices began 2013 at $3.29 per gallon and have climbed a total of 46 days to a national average of $3.78 per gallon. The previous record through the end of February was a rise of 46 cents per gallon in 2012.
• The dramatic increase has resulted in the highest average prices ever for this time of year. The average price of gas in February was $3.65 per gallon, which was ten cents higher than the previous record for the month set in 2012. Today’s national average of $3.782 per gallon is five cents higher than the average a year ago.
• “Gas prices increased at a dramatically faster pace than expected in February,” said Avery Ash, AAA spokesman. “Motorists unfortunately are paying more for gasoline than ever at this time of year, and it is primarily because of a decline in refinery production and higher futures prices.”
• Many refineries decreased fuel production in January and February to conduct seasonal maintenance and facility upgrades. Along with unplanned refinery issues, this has resulted in the lowest rate of crude oil processing since April 2011. Decreased production squeezes gasoline supplies, which leads to higher pump prices for motorists.
• The anticipated transition to summer-blend gasoline also has contributed to higher prices. The switchover takes place every year and is required to help meet local air quality standards. Summer-blend gasoline costs more to produce and can lead to logistical and distribution challenges.
• The sharp rise in gas prices has come despite a recent drop in the price of crude oil. West Texas Intermediate (WTI) oil futures are about $14 per barrel less than a year ago, which reduces the cost of refining gasoline.

Gasoline Likely to Peak at Lower Average Price than Recent Years

• AAA expects gas prices to peak at a lower national average than last year’s high of $3.94 per gallon. While seasonal gas prices have recently peaked in April or May, it is possible that prices will peak even earlier this year.
• “There is a lot of uncertainty on where gas prices will go over the next few weeks, but hopefully the worst of the price spikes are behind us for now,” continued Ash. “There is still refinery maintenance to be completed and most of the country must transition to summer-blend gasoline, so motorists are likely to face continued high prices in the weeks ahead.”
• Despite the spike in gasoline prices, WTI crude oil has dropped almost $5 per barrel in recent weeks as a result of record-high supplies and concerns about the global economy.
• The national average price of gas has increased in March for nine years in a row, indicating that seasonal supply and demand factors for this time of year can have a significant effect on gas prices.

Gas Prices Vary by More than $1 per Gallon Across the Country

• Gas prices vary by more than a $1 per gallon between the most expensive and cheapest states. The lowest gas prices are in the Rocky Mountain region, which is supplied by refineries with access to relatively cheap crude oil. The most expensive prices in the continental U.S. are in Calif. and N.Y., which have the highest gasoline taxes in the nation.
• Approximately 60 million Americans (nearly 20 percent) today live in a state where gas prices average more than $4 a gallon. Only about eight million Americans (three percent) live in a state where gas is less than $3.50 per gallon on average.
• The five states with the highest averages today include: Hawaii ($4.37), Calif. ($4.24), Alaska ($4.02), N.Y. ($4.01) and Conn. ($3.99). The five states with the lowest averages today include: Wyo. ($3.29), Mont. ($3.29), Utah ($3.43), Idaho ($3.45) and N.M. ($3.49).

Hearing 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.

WASHINGTON, January 31, 2013

U.S. Motorists Pay Second Highest Gas Prices on Record for January

• The national average price of gasoline in January was $3.32 per gallon, which was the second highest average on record for the month. This also represents the first monthly average below year-ago levels in six months. The highest recorded prices in January were in 2012, when the monthly average was $3.37 per gallon.
• “Gas prices in January historically are among the least expensive of the year because of lower demand and the use of winter-blend gasoline,” said Avery Ash, AAA spokesman. “While few of us would claim that gas prices are cheap, at least most motorists paid a little less compared to last year.”
• The national average price of gasoline increased 13 cents (4 percent) a gallon in January, which was the first monthly increase since August. Gas prices nationally have increased 14 days in a row for a total of 22 days during the month. Gas prices increased at a slower pace than in January 2012, when the national average increased 17 cents (5 percent) a gallon.
• The lowest state averages for January were in the Rockies, where relatively cheap crude oil, a glut of local gasoline supplies and limited pipeline capacity out of the region helped keep prices low. The average monthly price of gasoline in Wyo. ($2.87), Colo. ($2.91) and Utah ($2.92) were the first state monthly averages under $3 per gallon since January 2012.
• Drivers in the Northeast continue paying among the highest prices in the continental U.S. because local production and supplies still have not recovered from Hurricane Sandy. Higher than average state gasoline taxes also contribute to higher prices in the region. Motorists in N.Y. paid an average of $3.74 per gallon for the month, while the average in Conn. was $3.69 per gallon.
• Drivers in the Midwest saw the highest price increases for January as a result of rising crude oil costs in the region and decreased gasoline supplies. States with the highest monthly price increases included Minn. (33¢), Ind. (24¢), Mich. (23¢) and Ill. (23¢).

AAA Expects Gas Prices to Rise in February Due to Refinery Actions

• AAA expects the national average to increase in February due to seasonal refinery actions, but at a slower pace than in the previous two years when the average climbed by 29 cents per gallon (2012) and 27 cents per gallon (2011). Despite the expected slower overall pace, it is likely the national average will rise temporarily above year-ago levels in the coming days.
• “Gas prices are expected to rise steadily as many refineries temporarily close for scheduled turnaround maintenance and as the industry begins the complicated process of switching over to summer blends of gasoline,” continued Ash. “Various summer-gasoline blends are required in many regions to meet local air quality standards, but the fuels cost more to produce and the changeover process can disrupt supplies in the spring.”
• Gas prices in February increased at a quick pace over the past couple of years due to higher oil costs caused primarily by civil war in Libya (2011) and geopolitical tensions with Iran (2012). While gas prices this February are expected to increase at a slower rate, major events such as an unexpected refinery outage, increased unrest in North Africa or changes in the global economy could affect this month’s forecast. The national average in February has increased nine out of the previous ten years.
• The national average should rise steadily through April or May as the switch to summer-blend gasoline continues and with an increase in demand this spring. AAA expects gas prices this spring will peak at a lower national average than last year’s high of $3.94 per gallon, which occurred on April 5 and 6.
• Gasoline prices in the Northeast will remain among the highest in the country following the planned closure in February of Hess’ Port Reading, N.J. refinery, which accounts for 7.5 percent of Northeast gasoline production. The closure of this refinery further reduces production in the region, which means that a larger percentage of gasoline in the heavily populated Northeast will be supplied by Gulf Coast, Midwest and overseas refineries. The reduction in refinery production places Northeastern motorists at increased risk of price spikes this year if refinery or pipeline disruptions strike the region.

Today’s Gas Prices

• Today’s national gas price average is $3.423 a gallon, which is 2.9 cents more than yesterday and 10.2 cents more than a week ago. Today’s national average is the highest price since Nov. 25, 2012.
• Motorists nationally are paying an average of 2.7 cents per gallon less on gas than last year. This is the 27^th day in a row that gas prices have been less expensive than last year.
• The five states with the highest averages today include: Hawaii ($4.11), N.Y. ($3.78), Calif. ($3.76), Conn. ($3.75) and Alaska ($3.69). The five states with the lowest averages today include: Wyo. ($2.90), Mont. ($3.01), Colo. ($3.07), Utah ($3.09) and N.M. ($3.11).

AAA’s Daily Fuel Gauge Report is updated daily at www.FuelGaugeReport.AAA.com with average national, state and local retail prices for gasoline, diesel and E-85. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline. For more information, contact Michael Green at 202-942-2082, mgreen@national.aaa.com.

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.

(WASHINGTON, January 7, 2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.30. While this price is fractions of a penny more than one week ago, it is six cents cheaper than one month ago and seven cents less than one year ago. After setting new all-time daily records for each calendar day since August 20, the price on Saturday, Jan. 5, fell below the year-ago national average.

In the first 90 days of 2012, geopolitical tensions with Iran pressured the national price at the pump almost 65 cents higher. Without a similar market moving story to begin 2013, it is likely that the year-over-year discount will widen in the coming months. AAA continues to expect that gas prices in 2013 will average less than the annual record of $3.60 per gallon set last year.

Motorists in five states (Wyo., Utah, Colo., Okla. and Minn.) currently pay less than $3.00 per gallon at the pump, while only drivers in Hawaii pay more than $4.00 per gallon. The highest average prices in the continental United States are found in California and the Northeast.

Only 12 states and Washington, D.C. currently have an average price at the pump that is more expensive than one year ago. Not coincidentally, these are also the states where gasoline supplies and distribution were most heavily impacted by Hurricane Sandy this fall. While the net impact of the hurricane was demand destruction, which contributed to a lower national average to end the year, tight supplies in the Northeast linger and continue to buoy prices in the region.

While retail gasoline prices are currently rising at a slower rate than to start 2012, the average is pressured higher by crude oil prices that have continued to slowly increase in recent weeks. At today’s close of formal trading on the NYMEX, the price of West Texas Intermediate (WTI) crude oil settled at $93.19 per barrel, up 10 cents on the day. This is the highest settlement price since Sept. 18, but is still well below the 2012 high of $109.77 per barrel on Feb. 24.

WASHINGTON, December 31, 2012 -

Gas Prices in 2012 Most Expensive Year on Record

• The national average price of gasoline in 2012 was $3.60 a gallon, which is the most expensive annual average on record. The previous annual record was $3.51 a gallon set in 2011, while the third most expensive year for gas prices was 2008, when the average was $3.25 a gallon.
• “Record high gas prices have made this the most expensive year yet for motorists,” said Avery Ash, AAA spokesman. “Factors as volatile as major hurricanes, refinery outages and tension in the Middle East resulted in significant frustration for people filling up their cars.”
• The national average has broken a daily record high for 134 consecutive days for a total a 248 days in 2012. Motorists paid record-high gas prices on 68 percent of the days during the year.
• The highest daily national average of the year was $3.94 a gallon on April 5 and 6, while the lowest daily national average was $3.22 a gallon on Dec. 20.
• The states with the most expensive annual averages for 2012 included Hawaii ($4.31), Alaska ($4.09), Calif. ($4.03), N.Y. ($3.90) and Conn. ($3.90). The states with the cheapest annual averages included S.C. ($3.35), Mo. ($3.38), Miss. ($3.39), Tenn. ($3.40) and Okla. ($3.41).
• The highest daily statewide average of the year was $4.67 in Calif. on Oct. 9, while the lowest daily statewide average was $2.91 a gallon in South Carolina on July 3.
• The daily average for regular gasoline dropped below $3.00 per gallon in only eight states at some point during the year, while daily averages increased above $4.00 per gallon in 11 states (and Washington D.C.) at some point.

December Gas Prices Fall to Lowest Average of the Year

• Gas prices averaged $3.30 a gallon nationally in December, which was the lowest monthly average of the year.
• The national average declined 11 cents per gallon (3.25 percent) in December and declined on 22 days during the month.
• Gas prices nationally have fallen nearly 58 cents a gallon (14.96 percent) on average since September 14, the day before much of the United States began the transition to winter-blend gasoline. Gas prices have dropped as a result of decreased demand, increased supplies and the switchover to less expensive winter-blend fuels.

Fiscal Cliff Adding Uncertainty to Gas Prices in 2013

• A failure to reach a fiscal cliff deal could push the economy into a renewed recession, which would drive down gas prices as a result of decreased demand and weaker commodities prices including oil and gas. As a result of continued negotiations in Washington, predictions about gas prices in 2013 remain very uncertain.
• Even if a fiscal cliff deal is reached, AAA predicts that gas prices in 2013 will remain high, but are likely to be cheaper than in 2012 due to increased domestic crude oil production and that demand is expected to remain lower than in recent years.
• “What happens with gas prices this year will be impacted by decisions in Washington this month,” continued Ash.  “Yet no matter what happens in Congress, AAA is optimistic that gas prices will be less expensive than in 2012.”

Today’s Gas Prices (Dec. 31, 2012)

• Today’s national average price of gasoline is $3.29 per gallon, which is 4.5 cents more than a week ago and 1.6 cents more than a year ago.
• The five states with the highest prices include: Hawaii ($3.99), N.Y. ($3.74), Conn. ($3.68), Calif. ($3.57) and Vt. ($3.55). The five states with the lowest prices include: Wyo. ($2.98), Colo. ($3.01), Okla. ($3.02), Utah ($3.03) and Mo. ($3.03).

AAA’s average gas prices are updated daily at FuelGaugeReport.AAA.com with average national, state and local retail prices for gasoline, diesel and E-85. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

(WASHINGTON, December 31, 2012) Today’s national average price for a gallon of regular unleaded gasoline is $3.29. While this price is more than 10 cents less than one month ago, it is 4.5 cents more expensive than one week ago and 1.6 cents more than one year ago. The year ended with an annual average of $3.60 per gallon – the highest on record and nine cents more expensive than the previous high of $3.51 in 2011.

After falling for 28 consecutive days, the national average price at the pump has now increased for nine of the past 11 days. Today’s price is the highest on record for this calendar day and continues the streak of daily record prices that began on August 20. Barring a dramatic change overnight, tomorrow’s price at the pump is likely to be the highest ever to begin a year. Despite the pricier start, AAA expects national gas prices in 2013 to average less than they did in 2012.

On the final day of 2012, commodity and financial markets remain focused on negotiations in Washington to avert the “fiscal cliff.” If a deal is not reached and Congress does not act to quickly resolve the issue, most analysts predict that stock and commodity prices will decline as markets account for the likelihood of a weaker economy. Should an agreement be reached in the coming days, commodities prices could move higher as investor confidence returns and economic fears are allayed.

In 2012, prices increased to begin the year as geopolitical tension with Iran mounted and the “fear premium” in oil markets propelled the national average price at the pump to a high of $3.94 on April 5 and 6 – more than 65 cents higher than the price to begin the year. While a resolution to the “fiscal cliff” negotiations in Washington could pressure gasoline prices higher to begin 2013, it is unlikely that this increase would be on par with a year ago. Continued economic concerns, weak demand and increased domestic crude oil production are likely to temper any seasonal price increase in the coming months.

At today’s close of formal trading on the NYMEX, the price of West Texas Intermediate (WTI) settled at $91.82 per barrel, up $1.02 on the day. Afternoon news that a compromise in Washington might be near helped send prices higher to the fourth consecutive settlement above $90 per barrel. Prior to December 20, WTI had not settled above $90 since October 19. While oil prices are rising, they remain more than $10 less expensive than the $102.96 settlement price to begin 2012. WTI peaked for the year at $109.77 per barrel on February 24.

(WASHINGTON, December 24, 2012) Today’s national average price for a gallon of regular unleaded gasoline is $3.25. This is the same price as one week ago and 18 cents less than one month ago, but it is still two cents more expensive than one year ago. After declining for 28 consecutive days, the national average has now increased for four days in a row. Today’s price is the highest on record for this calendar day and continues the streak of daily record prices that began on August 20.

Gas prices had fallen steadily for more than three months, as the transition to less-expensive, winter-blend gasoline; cheaper crude oil prices; increasing gasoline inventories; lower demand; and continued economic concerns have meant relief at the pump for drivers across the country. The national average was $3.87 on September 14, the day before much of the country began the seasonal fuel changeover, and dropped to a 2012 low of $3.22 last Thursday, December 20. As crude oil prices have firmed, the decline in retail gasoline prices has slowed and now reversed.  Whether gas prices continue to rise or again turn lower will be impacted by action – or inaction – in Washington surrounding the looming “fiscal cliff.” If a deal is reached before the end-of-year deadline it will likely be seen as positive for the U.S. economy, which could send crude prices and gas prices higher.  If a deal is not reached, markets are likely to slump and gas prices could go even lower.

Crude oil prices increased to begin last week, settling above $90 per barrel on Thursday for the first time since October 19. However as hope for resolution in Washington faded on Friday, prices again turned lower and ended the week back below that threshold. At today’s close of formal trading on the NYMEX, the price of West Texas Intermediate (WTI) settled at $88.61 per barrel, down five cents on the day.

(WASHINGTON, December 17, 2012) Today’s national average of $3.25 for a gallon of regular unleaded gasoline is the lowest price of 2012. Entering the weekend, the lowest price this year had been $3.28 on January 1; however, beginning on Saturday, the national average has reached a new 2012 low on three consecutive days.

Today’s price is nine cents less expensive than one week ago and 17 cents less than one month ago, but it is still a penny more expensive than one year ago. Despite a national average that has declined for 25 consecutive days and 64 of the previous 70, today’s price is the highest on record for this calendar day. This continues the now 120-day streak of daily record prices that began on August 20. AAA expects the national average to continue to decline approaching the end of the year and the streak of year-over-year premiums could come to an end in the coming days

In addition to hitting a new low national price for 2012, several state averages have breached notable thresholds in recent days. On Friday, the average in Hawaii dropped to fractions of a penny below $4.00 per gallon at $3.9995 (AAA’s Daily Fuel Gauge Report website reports prices to the nearest tenth of a cent). This was the first time since January 1 and just the second time since March 13, 2011 that the price in every state was below $4.00.

On Saturday the average price in Missouri fell below $3.00 per gallon, which marked the first time since South Carolina was below that level on July 7 that a state average has breached this price point. As of today, Missouri is still the only state below $3.00; however the average pump price in nine other states is within a dime of this threshold. Motorists in Hawaii continue to pay the most expensive prices in the nation at $3.98 per gallon. This is more than 20 cents above the second highest state average: New York at $3.75. The lowest state average price remains Missouri at $2.96 per gallon.

Relief is being felt by motorists across the country as pump prices continue to fall approaching the busy year-end holiday travel period. These prices have been driven lower by a number of factors, including the switch to winter-blend fuel, which is less expensive to produce; increasing gasoline inventories; cheaper crude oil prices; lower demand; and economic concerns. Prices in every state are less than one week ago, led by dramatic declines in the Midwest: Ohio – 21 cents, Indiana – 20 cents, Michigan – 18 cents, Minnesota – 16 cents, Kentucky – 15 cents and Illinois – 14 cents.

Crude oil prices have increased slightly over the last week, but they continue to trade lower than the same period in 2011 and have kept downward pressure on retail prices at the pump. At today’s close of formal trading on the NYMEX, the price of West Texas Intermediate (WTI) settled at $87.55 per barrel, up 47 cents on the week and $1.99 from last Monday. WTI has not settled above $90 per barrel since October 19. Last year, the price of WTI settled above $90 per barrel on October 24 and did not settle below that mark again until May 23, 2012.