AAA Reports Gas Prices Down Slightly, Ivan Remains A Concern

MINNEAPOLIS, Sept. 14 -- The national average price of self- serve regular gasoline is two cents lower since mid-August. While lower pump prices are welcome, Hurricane Ivan is not.

Hurricane Ivan has the potential to create upward pressure on gas prices throughout much of the nation in the next few weeks due to the safety-related shutdown of oil drilling platforms in the Gulf of Mexico; the slowdown or suspension of imported oil and gasoline deliveries to ports in the area; and the possible closure or significant reduction of refining operations along the Gulf coast. Most of the nation's mid-section and the southeast receive petroleum that is pumped, imported, processed or sent by pipeline and barge from Gulf coastal waters.

"While crude oil prices came down after briefly flirting near $50 per barrel at the beginning of the month, Hurricane Ivan has put a stop to it," said Dawn Duffy, AAA spokesperson. "Currently, crude oil prices are above $45 per barrel due to growing concerns about the hurricane's potential effect, which may sustain for the next week or two."

Reports for September 14, 2004, reflect the following average prices per gallon for self-serve, regular unleaded gas:

                                    Current         Month Ago     Year Ago
   National                          $1.84           $1.86         $1.69
   Minnesota                         $1.79           $1.80         $1.62
   Duluth                            $1.78           $1.82         $1.64
   Minneapolis/St. Paul              $1.80           $1.79         $1.61
   Rochester                         $1.75           $1.79         $1.62
   St. Cloud                         $1.73           $1.79         $1.59

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, and can be found at http://www.fuelgaugereport.com/ .

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, with 4.1 million members in eight Midwest states. AAA Minneapolis serves more than 172,000 members in Hennepin County.