U.S. Gas Prices Poised for Further Declines as Summer Vacation Season Approaches, AAA Reports

ORLANDO, Fla.--May 1, 20058, 2005--The return of crude oil prices below $50 per barrel bodes well for lower retail gasoline prices as summer vacation season nears, AAA said today.

The nation's largest organization for motorists said its daily, online Fuel Gauge Report - http://www.fuelgaugereport.com - shows the nationwide average price of self-serve regular gasoline has dropped 8.4 cents per gallon in the last 30 days to $2.16 per gallon and is now 11.6 cents below the all-time high price of $2.276 per gallon reached on April 11 of this year.

AAA, which monitors national, state and local gasoline prices as a public service, said growing inventories of both crude oil and gasoline in the United States should continue to push average retail gasoline prices toward $2 per gallon over the next week. Prices often firm up during major travel holiday weekends, but should resume their fall in early June if crude oil prices remain in the mid $40 per barrel range or go lower.

One year ago the average price of self-serve regular gasoline was $1.97 per gallon, or 19 cents per gallon less expensive than today. Five years ago the price was $1.465 per gallon; 69.5 cents per gallon less expensive.

The Great Lakes and Midwest experienced the biggest price drops during the last month with prices down an average of 16.5 cents per gallon in both regions to $2.129 and $2.075 per gallon, respectively. The average price fell 14.5 cents per gallon in the Southeast to $2.066. In the Southwest prices are down 10.8 cents on average to $2.128 per gallon.

Prices in the Mid-Atlantic region have fallen 8.4 cents in the last month to $2.145 per gallon. New England motorists are paying 3.7 cents less per gallon this month with prices averaging $2.183. The average price dropped 2 cents in the west where the price now averages $2.454 per gallon.

Nationwide, the price of self-serve, mid-grade averages $2.293 per gallon, a decline of 8.9 cents per gallon since last month, and 17 cents higher than one year ago. Self-serve premium averages $2.167 per gallon, down 9.3 cents since mid-April and 17.6 cents higher than one year ago.

Average regional prices for self-serve regular in mid-May of last year were: Great Lakes, $2.058; New England, $2.008; West, $2.235; Mid-Atlantic, $1.976; Midwest, $1.988; Southwest, $1.943; and Southeast, $1.888.

The national average prices for self-serve regular unleaded gasoline for AAA's mid-May survey for the last five years are: 2004, $1.97; 2003, $1.497; 2002, $1.40; 2001, $1.718; and 2000, $1.465.

AAA's Fuel Gauge Report is based on data from Oil Price Information Service, the nation's most comprehensive source of petroleum pricing information. AAA purchases the data and makes it available free on the Internet as a public service. Average daily prices for the nation, all 50 states and more than 250 localities are available for all grades of gasoline, making the site the most current and complete public source of fuel price information.

As the nation's largest motoring and leisure travel organization, AAA provides more than 48 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 http://www.aaa.com.