AAA Reports Gas Prices Resume Upward Trend

MINNEAPOLIS, July 13 -- After six weeks of decline, the nationwide average cost of self-serve regular gasoline has begun increasing again, currently registering $1.904 per gallon. The national average price of gasoline hit an all-time high of $2.054 on May 2, 20046, 2004, and then began falling until it reached an average of $1.884 last week, July 7. The trend has been higher since.

According to AAA, the resumption of pump price increases is attributable to both strong demand and crude oil prices moving back into the $40 per barrel range after staying below that level throughout June. The price of oil closed yesterday at a five-week high of $40.75 per barrel.

"Despite increased production from OPEC nations and other producers, crude oil persists near the $40 level," said Dawn Duffy, AAA spokesperson. "Analysts and experts are tying this to over-speculation in the futures market for oil, which is not reflecting upon the ample reserves that the U.S. can call upon if terrorist attacks cause major supply disruptions in the Middle East."

According to U.S. Energy Secretary Spencer Abraham, consumers are paying more due to fears of system disruptions, as opposed to actual occurrences, with any news of possible terrorist threats propping prices up, regardless of what commentators report.

Reports for July 13, 2004, reflect the following average prices per gallon for self-serve, regular unleaded gas:

                                    Current        Month Ago      Year Ago
   National                          $1.90           $1.99         $1.50
   Minnesota                         $1.83           $1.88         $1.49
   Duluth                            $1.85           $1.90         $1.51
   Minneapolis/St. Paul              $1.82           $1.85         $1.51
   Rochester                         $1.84           $1.88         $1.50
   St. Cloud                         $1.82           $1.90         $1.46

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, with 4.1 million members in eight Midwest states. AAA Minneapolis serves nearly 173,000 members in Hennepin County.