National Average Gas Price Drops below $2 Per Gallon, AAA Fuel Gauge Report Shows

ORLANDO, Fla.--Nov. 16, 2004--The national average price of self-serve regular gasoline is continuing to drop after nearing record highs shortly before the U.S. Presidential election, AAA's daily, online Fuel Gauge Report (http://www.fuelgaugereport.com) shows.

The nationwide gas price reached $2.033 per gallon on Oct. 29 -- short of the all-time record high price of $2.54 per gallon set last May 26 -- before starting a gradual decline to $1.958 as of today.

AAA said an important reason for the gradual easing of gas prices is the lower price of crude oil in the last two weeks. Crude oil reached $55 per barrel before the Nov. 2, 2004 election and has recently fallen below $47 per barrel. Lower oil prices have occurred as the U.S. oil industry has been able to restore capacity and reserves lost when Hurricane Ivan struck the Gulf of Mexico in September.

AAA said gas prices have declined in some regions and increased in others since mid-October when the national average price was $2.17 per gallon.

In the Great Lakes region, prices are down an average of 7.6 cents per gallon to $1.930. The average price fell in the Midwest by 5 cents to $1.896 per gallon. The average price also fell in the Southwest; down 1.9 cent per gallon to $1.913.

Prices are unchanged in the Southeast since mid-October at $1.894, but are higher by an average of 3.9 cents per gallon in New England where the need for home heating oil is pushing prices up. New England's average price is 2.028 per gallon. Gas prices are up in the Mid-Atlantic region by an average of 2 cents per gallon to $1.978. Prices also are higher in the West where the average is $2.047 per gallon; up 1.4 cents since the middle of last month.

Nationwide, the price of self-serve, mid-grade averages $2.079 per gallon, a decrease of 1.5 cents per gallon since last month, and 48.1 cents per gallon higher than last year. Self-serve premium averages $2.154 per gallon, down 1.6 cents since mid-October and 49.9 cents higher than one year ago. The price of self-serve regular is 45.4 cents higher than one year ago.

Average regional prices for self-serve regular in mid-October of last year were: West, $1.618; Great Lakes, $1.517; New England, $1.601; Mid-Atlantic, $1.545; Southwest, $1.455; Midwest, $1.494; and Southeast, $1.405.

The national average prices for self-serve regular unleaded gasoline for AAA's mid-November survey for the last five years are: 2003, $1.504; 2002, $1.458; 2001, $1.206; 2000, $1.547; and 1999, 1.282 cents.

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 47 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.