AAA Reports Gas Prices Up Since Mid-January

MINNEAPOLIS, Feb. 17, 2004 -- Gasoline prices have continued to increase since the middle of January 2004. Currently, the nationwide average price of self-serve unleaded is up 4.8 cents, from last month's $1.595 to today's $1.643 per gallon. Gas prices are higher due to a combination of factors, including high crude oil prices, low U.S. crude oil inventories, cold winter weather and rising gasoline demand. The nationwide average last year February was $1.645.

"Today's pump prices are nearly identical to the prices of one year ago; however, the circumstances are quite different," said Dawn Duffy, AAA spokesperson. "Last year at this time, the U.S. was preparing for a possible war with Iraq and oil futures were thought to be sky-high at $34 per barrel. Today, with the outcome of the Iraqi war decided and the U.S. economy growing, the price of oil is $35 per barrel largely due to low U.S. oil inventories and OPEC's decision last week to keep a lid on global oil production, or even reduce it."

In addition, the gasoline refining industry will start switching from winter gasoline production to cleaner-burning summer fuels in March, a process that will continue through the end of May.

For motorists, all this means spring or summer gasoline prices that probably will reach or exceed the record highs seen last year.

Reports for February 17, 2004, reflect the following average prices per gallon for self-serve, regular unleaded gas:

                                   Current        Month Ago     Year Ago
  National                          $1.64           $1.60         $1.64
  Iowa                              $1.57           $1.55         $1.61
  Cedar Rapids                      $1.58           $1.52         $1.59
  Davenport/Moline/Rock Island      $1.58           $1.53         $1.64
  Des Moines                        $1.57           $1.58         $1.58
  Sioux City                        $1.56           $1.56         $1.58
  Waterloo/Cedar Falls              $1.54           $1.56         $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.

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.