ORLANDO, Fl (May 20, 2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.65. This price is seven cents more expensive than one week ago and 14 cents more than one month ago. The seven-cent weekly increase is the largest such spike since February and today’s national average price at the pump is the highest since March.

While the average American motorist has enjoyed a less expensive year-over-year pump price for 79 consecutive days, the savings have narrowed to just four cents per gallon, down substantially from the peak year-to-date discount of 39 cents on April 18. With the national average rising steadily, compared to a year ago when prices were tumbling, it is likely that the average will once again rise above year-ago levels in the coming days and may be more expensive than last year for the approaching Memorial Day holiday weekend.

Higher crude oil prices may be the reason that drivers in every state are paying more for gasoline than two weeks ago, but tight regional supplies and refinery maintenance – both planned and unplanned – are the reason for the dramatically higher pump prices in the Midwest and West Coast. In particular, the average price paid by motorists in Minnesota (+68 cents) and North Dakota (+63 cents) has spiked more than sixty cents during this period, propelling both state averages to new all-time highs. The previous record in both states was in July 2008; at the same time the national average soared to what is still a record of $4.11 per gallon.

While not yet at record highs, three states (Iowa, Neb. and Okla.) have had prices increase by more than 50 cents in two weeks and are within a dime of their respective all-time highest pump prices. Rising Midwest prices may have slowed over the weekend from their recent breakneck pace, but motorists are not out of the woods yet as regional supplies remain low and heavy storms were forecast yesterday and today. No refinery disruptions have been reported as a result of the storms, but the potential remains for additional refinery issues in the already supply-strapped region.

With the upcoming Memorial Day holiday marking the unofficial start to summer, the national average continues to cling to a year-over-year discount; however motorists in all twelve Midwestern states and Oklahoma are paying at least a dime per gallon more than on this date in 2012. The national average on the previous two Memorial Days were $3.64 (May 28, 2012) and $3.79 (May 30, 2011).

With much of the focus on volatile regional gasoline markets, West Texas Intermediate (WTI) crude oil prices have continued to drift higher in recent weeks. At the close of today’s formal trading on the NYMEX, WTI settled up 69 cents at $96.71 per barrel. This is the highest settlement price for WTI in more than 6 weeks.

(WASHINGTON, May 13, 2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.58. This price is six cents more expensive than one week ago and four cents more than one month ago. This is the largest weekly increase since February and the national average has now registered a month-over-month premium on three straight days.

The national average has been less than the same date in 2012 for 72 straight days; however the year-over-year discount has narrowed to 15 cents per gallon after widening to as much as 39 cents per gallon on April 18. Gas prices at this time last year were falling consistently and would eventually decline 82 out of 87 days for a total of 61 cents from April 6 to July 2. By comparison, the national average this year has increased for eight straight days to the highest price in more than a month. With this in mind, it is likely that the year-over-year discount will continue to fade in the coming days.

The national average is currently 21 cents below the peak 2013 price to date of $3.79 on February 27. In 2011 the national average for regular unleaded gasoline peaked at $3.98 on May 5. In 2012 the price peaked at $3.94 on April 5 and 6.

The recent trend of higher prices at the pump has been nearly universal with only motorists in West Virginia and Ohio paying less today at the pump than a week ago. Six states (Ore., Minn., Wash., Okla., Neb. and Iowa) have seen prices surge by more than twenty cents and 13 states have seen prices jump by at least a dime. While higher crude oil prices have put upward pressure on retail gasoline prices across the country, it has been tight supplies and refinery maintenance – both planned and unplanned – in Midcontinent and West Coast that has squeezed prices substantially higher for drivers in those regions.

After drifting higher for several weeks, West Texas Intermediate (WTI) crude oil prices were pressured lower today by a stronger dollar and weaker equities. Oil futures are traded in U.S. dollars and as the dollar strengthens against foreign currencies, as was the case today, these futures become relatively more expensive to purchase and are a less attractive investment. At the close of today’s formal trading on the NYMEX, WTI settled down 87 cents at $95.17 per barrel.

(WASHINGTON, May 6, 2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.52. This price is two cents more expensive than one week ago, but it remains 9 cents less than one month ago and 26 cents less than one year ago. After registering a week-over-week decline every day since March 1 (61 consecutive days), the national average has posted a week-over-week increase for six straight days. The national average is currently 27 cents below the peak 2013 price to date of $3.79 on February 27. In 2011 the national average for regular unleaded gasoline peaked at $3.98 on May 5. In 2012 the price peaked at $3.94 on April 5 and 6.

Since national gas prices peaked at the end of February, motorists nationwide have felt welcome relief at the pump in the form of falling prices. In recent weeks, the exception to this downward trend was limited to six states in the Great Lakes region where the transition to summer-blend gasoline and heavy rains triggered supply concerns and provided a catalyst for higher retail prices. While these remain the only states with a higher average pump price today than a month ago (Ill. +15 cents, Ind. +12 cents, Ohio +10 cents, Wisc. +8 cents, Mich. +7 cents and Minn. +2 cents), motorists in the majority of states are paying more today than one week ago.

Higher prices in the Great Lakes region were initially the product of domestic production concerns; however the recent broader increase in retail gas prices has been supported by higher global crude oil prices. On April 17 West Texas Intermediate (WTI) crude oil settled at $86.68 at the close of formal trading on the NYMEX. At the close today the traditional U.S. benchmark settled at $96.16 — up 55 cents on the day and almost $10 in less than three weeks.

These higher oil prices have been broadly supported by signs of economic recovery, however news over the weekend of an Israeli airstrike in Syria raised fresh concerns of a possible disruption to oil supplies in the Middle East and added to the upward pressure on prices. In the spring of both 2011 and 2012 oil prices rose substantially on violence and escalating geopolitical tensions with Libya and Iran respectively, before tumbling as these concerns were alleviated heading into the summer.

(WASHINGTON, April 29, 2013) “AAA is encouraged by President Obama’s nomination of Charlotte Mayor Anthony Foxx to be the new U.S. Secretary of Transportation.  We look forward to working with Mayor Foxx once confirmed by the U.S. Senate, and we are hopeful that he will help make transportation a top national priority. Mayor Foxx will face many challenges because the nation must address a significant transportation funding shortfall, and there are still too many Americans losing their lives on the nation’s roadways.

AAA appreciates retiring Secretary Ray LaHood’s unwavering commitment and bipartisanship in achieving national transportation goals.  Secretary LaHood helped raise awareness of the dangers of distracted driving and worked with AAA and other stakeholders towards a national goal of zero traffic deaths. His bipartisan efforts also helped achieve passage of a multi-year transportation bill, MAP-21, which included significant program reform and added funds for transportation.”

(WASHINGTON, April 29, 2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.50. This price is two cents less expensive than one week ago, 14 cents less than one month ago and 32 cents less than one year ago. The last time that the national average was below $3.50 was February 2. While the national average price at the pump increased by fractions of a penny overnight, it had previously fallen for four consecutive days and 50 of the previous 61. The national average is currently 29 cents below the peak 2013 price to date of $3.79 on February 27. In 2011 the national average for regular unleaded gasoline peaked at $3.98 on May 5. In 2012 the price peaked at $3.94 on April 5 and 6.

Motorists in the vast majority of states have seen the price of gasoline continue to fall during the last week; however drivers in nine states (see graphic below), including parts of the Midwest, actually saw prices increase during this period. Analysts have noted that the region would be susceptible to price increases as regional refineries had yet to undergo seasonal maintenance and make the transition to summer-blend gasoline production, and recent storms and resulting power outages provided a catalyst for higher retail prices in the region. Gas stations in much of the country must make the retail switch to selling summer-blend gasoline by June 1, however refineries make the shift to summer blend in March and April in order to meet a May 1 production deadline. During this switch regional production is reduced and supplied markets are more sensitive to unexpected disruptions, as was the case during the recent storms in the Midwest.

On Saturday a fire and explosion at the Marathon refinery in Detroit raised new concerns of a possible disruption to regional supply, however a statement issued today indicated that the incident is not expected to have an impact on production. While it does not appear that this most recent event will contribute to higher prices for motorists, it highlights the likelihood that gas prices in the region will remain sensitive to any unexpected disruptions to production as we near the deadline for the switch to summer blend gasoline.

While  retail gas prices have continued to fall nationally, crude oil prices have reversed their recent slide and jumped higher in the last week. One week after settling below $90 per barrel for the first time in 2013, West Texas Intermediate (WTI) crude oil began last week at $88.76 per barrel but rose sharply to end the week at $93. This increase continued today as a weaker dollar kept upward pressure on oil prices. Oil futures are traded in U.S. dollars and as the dollar weakens against foreign currencies, as was the case today, these futures become relatively less expensive to purchase and are a more attractive investment. At the close of today’s formal trading on the NYMEX, WTI settled up $1.50 cents at $94.50 per barrel.

AAA Says Policymakers Failing to Connect with Motorists’ Practical Concerns

WASHINGTON, D.C., (April 25, 2013) – Sixty-two percent of U.S. motorists believe the federal government should invest more money to improve roadways, according to a recent public opinion poll conducted by AAA. The vast majority of drivers (81 percent) also believe the federal government should do more to improve the condition of roads and bridges.

“Most Americans recognize the need for increased transportation funding because they drive over potholes and bumpy roads every day,” said Robert L. Darbelnet, President and CEO of AAA. “Unfortunately, the main concerns voiced by motorists about transportation and driving differ markedly from the points generally expressed by policymakers to promote funding legislation.”

When asked for their concerns regarding transportation and driving their cars, issues identified by drivers included the reliability and safety of their car (34 percent) and the direct financial cost of driving (19 percent). Other major concerns included the behavior of other drivers (15 percent), safety/road accidents (15 percent) and the gas mileage/fuel efficiency of their vehicle (15 percent). According to AAA’s recently released ‘Your Driving Costs’ report, the average cost to own and operate a car this year rose 1.96 percent to 60.8 cents per mile, or $9,122 per year, based upon 15,000 miles of annual driving.

“Policymakers and transportation advocates are failing to connect with the public on the practical concerns that matter most to motorists,” continued Darbelnet. “Motorists want to hear about how their elected officials can improve their daily commute by repairing the pothole down the street or the bumpy road around the corner.”

Nearly seven out of ten (68 percent) motorists believe the federal government should make “reducing congestion on the roads” a top transportation priority. Traffic jams and crowded roads waste billions of dollars a year in time and fuel, and causes significant frustration for many drivers. Federal transportation funding can support increased capacity and expanded roadways.

Motorists who feel that the federal government should increase taxes or fees to improve roadways support a number of options for increasing transportation funding, including:

• Replacing the per-gallon gas tax with a national gasoline sales tax (55 percent)
• Creating a new national sales tax dedicated to transportation (47 percent)
• Expanding the use of tolls to Interstate highways where tolls are not currently collected (47 percent)
• Creating a carbon tax on fossil fuels (45 percent)
• Replacing the federal gas tax with a per-miles-driven fee (37 percent)
• Creating an energy tax on all sources of energy (35 percent)
• Increasing the federal per-gallon gas tax (27 percent)

“The public seems very willing to examine innovative transportation methods to improve road quality,” continued Darbelnet. “AAA is dedicated to examining all funding options and educating policymakers on the need to fully fund improvements for America’s roads and bridges.”

Motorists overwhelmingly (83 percent) remain concerned about wasteful government spending on transportation. AAA has worked with Congress to implement reforms, such as eliminating earmarks, streamlining bureaucratic oversight and accelerating project development as part of Map 21, the recently passed federal transportation authorization law. AAA will continue to push for improved reforms to reduce wasteful spending as Congress debates transportation funding.

This report presents the findings of an omnibus telephone survey (654 landline and 354 cell phone) consisting of 1,008 adults (503 men and 508 women) living in the continental United States. A screener question identified 817 current motorists who were asked the remainder of the question list. The study has a 95 percent margin of error of ±4.0 percent.

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.

Nearly two-thirds of consumers offset high gas prices with driving or lifestyle changes

WASHINGTON, D.C., (April 23, 2013) – Half of U.S. adults consider gas prices to be “too high” when it reaches $3.44 per gallon, indicating a potential breaking point on gas prices, according to a new consumer price index developed by AAA. Roughly two-thirds of Americans (62 percent) are offsetting high gas prices by changing their driving habits or lifestyle.

“It was not long ago that motorists were shocked to pay more than $3 per gallon for gasoline, but now that is standard at stations nationwide,” said Robert L. Darbelnet, President and CEO of AAA. “Today’s average consumer feels a breaking point on high gas prices closer to $3.50 per gallon, and expensive prices have forced many motorists to change their driving habits.”

Additional Resources

• Gas Price Omnibus Study April 2013

AAA’s gas-price index tracks consumer attitudes by determining at what price the cost of gasoline becomes too high. The results from the open-ended survey demonstrate how attitudes can be expected to change as prices rise above significant milestones:

• 46 percent believe gas is too high when the price reaches $3.00 per gallon
• 61 percent believe gas is too high when the price reaches $3.50 per gallon
• 90 percent believe gas is too high when the price reaches $4.00 per gallon

“It is possible there is a new normal in terms of consumer attitudes now that gas prices have remained above $3 per gallon for more than two years,” continued Darbelnet. “Most people have resigned themselves to paying higher gas prices and are cutting back on driving, shopping and dining out to save money.”

Consumers report changing their driving habits or lifestyle in a number of ways to offset recent gas prices, including:

• Driving less – 86 percent
• Reducing shopping or dining out – 71 percent
• Driving a more fuel efficient car – 54 percent
• Delaying major purchases – 53 percent
• Working closer to home – 39 percent
• Carpooling – 33 percent
• Using public transportation more regularly – 15 percent
• Other – 18 percent

Younger consumers ages 18-34 are more likely to offset recent gas prices by working closer to home or using public transportation more regularly than adults ages 35 and up (48 percent vs. 35 percent and 25 percent vs. 10 percent, respectively). These results could suggest a generational shift in terms of attitudes towards driving, but it is too early to say whether these attitudes would continue into the future.

Today’s national average price of gasoline is $3.52 per gallon, but prices currently vary by more than $1 per gallon nationwide. The national average has remained above $3.00 per gallon for 28 consecutive months. While the national average has not surpassed $4.00 per gallon since 2008, it is not uncommon for motorists living in the West Coast, Northeast and near the Great Lakes to pay more than $4.00 per gallon.

AAA developed the price index by asking respondents, “At what price do you start to consider the cost of gasoline to be too high? Please tell me the price per gallon to the nearest ten cents.” AAA combined the answers from 974 respondents to determine the potential consumer breaking point for high gas prices.

This report presents the findings of a telephone survey conducted among two national probability samples (landline only and cell phone), consisting of a combined total of 1,011 adults (503 men and 508 women), 18 years of age and older and living in the continental United States. Interviewing for this survey was conducted on March 28-30. The total included 661 interviews from the landline sample and 350 interviews from the cell phone sample. This study has a 95 percent margin of error of ±3.8 percent.

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, April 22, 2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.52. This price is a penny less expensive than one week ago but, it is 16 cents less than one month ago and 35 cents less than one year ago. After declining for 45 of 51 days the national average has now increased for three straight days. Despite this recent string of rising prices, the national average remains 27 cents below the peak 2013 price to date of $3.79 on Feb. 27. In 2011 the national average for regular unleaded gasoline peaked at $3.98 on May 5. In 2012 the price peaked at $3.94 on April 5 and 6.

While motorists in every state but three (Utah, Idaho and Wyo.) are paying less at the pump  than one month ago, those in some Midwestern states have seen prices climb sharply in the last week following supply concerns from heavy rains in the region. Prices in 43 states and Washington D.C. are lower than one week ago, compared to four Great Lakes states, which have seen the average price increase more than a dime per gallon (Ill. 10 cents, Mich. 24 cents, Ohio 28 cents and Ind. 28 cents).

The recent storms and resulting power outages provided the catalyst for higher retail prices in the Midwest, however analysts had warned that the region was susceptible to price increases as regional refineries had yet to undergo maintenance and make the transition to summer-blend gasoline production. Gas stations in much of the country must make this retail switch by June 1, however refineries shift to making summer blend in March and April to meet a May 1 production deadline. During this switch regional production is reduced and supplied markets are more susceptible to unexpected disruptions, as was the case during the recent storms in the Midwest.

The primary factors driving retail gas prices lower in recent weeks have been low demand, continued disappointing economic news and lower crude oil prices. This slide in crude oil saw Wednesday’s settlement price for West Texas Intermediate (WTI) crude oil, the traditional U.S. benchmark, fall to $86.68 per barrel, which set a new 2013 low. While prices have recovered slightly, they continue to support lower gas prices for motorists. At the close of today’s formal trading on the NYMEX, WTI settled up 80 cents at $88.81 per barrel.

(WASHINGTON, April 15, 2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.53. This price is seven cents less expensive than one week ago, 16 cents less than one month ago and 38 cents less than one year ago. The national average has now fallen for 12 straight days and 41 of 47 days since the peak 2013 price to date of $3.79 on Feb. 27. In 2011 the national average for regular unleaded gasoline peaked at $3.98 on May 5. In 2012 the price peaked at $3.94 on April 5 and 6.

Motorists across the country continue to feel relief at the pump as prices in every state but Idaho are lower than one week ago. While Idaho is also one only five states where drivers are not paying less than a month ago, many of those states where gasoline is less expensive have seen prices fall dramatically: motorists in 40 states are paying at least a dime less than one month ago, seven states are paying at least 20 cents less and two states (Ind. and Ohio) are paying at least 30 cents less. Drivers in Hawaii continue to pay the highest gas prices in the country and as of Saturday were the only state to average more than $4.00 per gallon. This marked the first time since February 7 that only one state had registered an average price at the pump above this threshold.

Retail gas prices have dropped steadily since the end of February, however the factors pressuring prices lower have changed during this decline. Prices fell to begin March as many refineries resumed normal operations following the completion of seasonal maintenance and production concerns eased. This decline came even as crude oil prices moved higher. West Texas Intermediate (WTI) crude oil settled at what was then a 2013-low of $90.68 per barrel to begin March. On the final trading day of the month WTI settled $6.55 higher at $97.23, which was the highest price since mid-February.

U.S. gasoline prices in April have continued to fall, not just because of weak demand data and signs of economic weakness but as oil prices have also moved sharply lower.

At the close of today’s formal trading on the NYMEX WTI settled $2.58 lower at $88.71 per barrel. This is $8.52 below than the recent peak price on March 28 and is the first time since Christmas Eve that WTI has settled below $90 per barrel.

(WASHINGTON, March 21, 2013)

Statement by AAA President & CEO Robert L. Darbelnet:

“Today’s action by the U.S. House of Representatives in passing a continuing resolution is a victory for highway safety.  The U.S. Senate served the nation’s interests through a bipartisan effort to ensure that MAP-21′s highway safety programs were adequately funded, which President Obama supported.  Over the last few weeks, AAA clubs from around the country weighed in to get this done.

Safety funding comes at a crucial time, as we are now seeing a slight uptick in roadway fatalities.  Today’s action was a good example of bipartisan collaboration that will help deliver better transportation solutions for the American people.”