AAA Reports Pump Prices Near $2/Gallon, Oil Hits $54/Barrel

MINNEAPOLIS, Oct. 12, 2004 -- The national average price of self- serve regular gasoline is up 13.1 cents since mid-September. The escalating pump price reflects sharply higher crude oil prices, which briefly topped $54 per barrel today.

The still-dominant reason for higher gas and oil prices is the continuing loss of oil production in the Gulf of Mexico associated with Hurricane Ivan. As of this week, oil production in the Gulf region is estimated to be 475,000 barrels-per-day below normal output. Prices also are affected by continuing security concerns for oil production in Nigeria and Iraq, labor strife among Norwegian oil workers, continued strong gasoline demand and the growing concern about winter availability of home heating oil.

"This week, the Presidential campaign began focusing on energy prices as an election issue," said Dawn Duffy, AAA spokesperson. "In their third and final debate tomorrow, the candidates likely will discuss how the U.S. can meet its growing need for affordable energy, while at the same time continue to make progress on protecting the environment."

Reports for October 12, 2004, reflect the following average prices per gallon for self-serve, regular unleaded gas:

                                    Current         Month Ago     Year Ago
   National                          $1.97           $1.84         $1.56
   Iowa                              $1.92           $1.75         $1.47
   Cedar Rapids                      $1.96           $1.78         $1.42
   Davenport                         $1.94           $1.77         $1.51
   Des Moines                        $1.91           $1.68         $1.48
   Sioux City                        $1.89           $1.76         $1.45
   Waterloo                          $1.92           $1.72         $1.45

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.