AAA Reports Gas Prices Starting to Decline

MINNEAPOLIS, Sept. 16 -- After reaching a new record high price of $1.737 per gallon on August 30, 2003, the nationwide average price of self-serve regular gasoline has begun to decline and now averages $1.687 per gallon. The current average price, however, still remains 10 cents higher than one month ago, when the national average pump price was $1.587 per gallon. (In Iowa, current prices are much closer to those documented a month ago.)

Prices moved sharply higher at the end of August due to higher crude oil prices, rising demand for gasoline, a drop in gasoline imports, a series of problems with domestic gasoline refineries and a pipeline break.

"Concern over Hurricane Isabel has the potential to push gas prices higher on the East Coast, due to regional consumer demand and the possibility that production and shipping will be briefly suspended at many East Coast refineries and terminals," said Dawn Duffy, AAA spokesperson. "Today's weather reports show the storm may be weakening, so Isabel's effects on fuel prices hopefully could be less than expected."

Crude oil prices also have dropped in the last week and now average $27.70 per barrel, down approximately $4 from where the price was for much of the summer. Lower crude oil prices will help moderate any price increases caused by the storm.

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

                                   Current        Month Ago      Year Ago
   National                         $1.69           $1.59         $1.40
   Iowa                             $1.60           $1.55         $1.38
   Cedar Rapids                     $1.57           $1.52         $1.33
   Davenport/Moline/Rock Island     $1.63           $1.56         $1.35
   Des Moines                       $1.62           $1.51         $1.40
   Sioux City                       $1.58           $1.56         $1.36
   Waterloo/Cedar Falls             $1.54           $1.52         $1.34

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.