AAA Reports Gas Prices Fall Third Consecutive Month

MINNEAPOLIS, Dec. 16, 2003 -- The nationwide average price of self- serve regular gasoline has dropped for the third month in a row. Today's national average price of $1.471 per gallon is down three cents since mid- November, but approximately 10 cents higher than last year at this time.

Since September 2003, pump prices have decreased due to improved gasoline inventories and the expiration of summer fuel requirements in many regions across the country.

"News of Saddam Hussein's capture is positive for the long-term recovery of Iraq's oil industry and for lower prices in the future," said Dawn Duffy, AAA spokesperson. "The event caused a brief decline in crude oil prices, but the market quickly recovered and closed just over $33 per barrel yesterday."

Looking ahead, winter holiday travelers should be prepared to pay gasoline prices that are similar to our current prices. There may be an increase in the Northeast, however, as New York and Connecticut switch to ethanol-blended fuel at the New Year.

Finally, OPEC does not have a meeting scheduled until February 2004 and it is too early to speculate what the oil cartel will do concerning their oil production levels.

Reports for December 16, 2003, reflect the following average prices per gallon for self-serve, regular unleaded gas:

                                 Current     Month Ago    Year Ago

             National             $1.47        $1.50        $1.37
               Iowa               $1.42        $1.44        $1.30
           Cedar Rapids           $1.46        $1.42        $1.23
   Davenport/Moline/Rock Island   $1.38        $1.44        $1.34
            Des Moines            $1.41        $1.44        $1.28
            Sioux City            $1.38        $1.41        $1.27
       Waterloo/Cedar Falls       $1.32        $1.37        $1.26

AAA's Fuel Gauge Report is based upon data from the Oil Price Information Service, the nation's most comprehensive source of petroleum pricing statistics.

AAA offers automotive, travel, insurance and financial services to more than 45 million members in the United States and Canada. AAA Minnesota/Iowa is part of The Auto Club Group, which has 4.1 million members in eight Midwest states.