AAA Reports Oil Price Declines Are Helping to Lower Gas Prices

BURNSVILLE, Minn., Feb. 15, 2006 -- The U.S. is experiencing continued drops in gasoline prices, mainly due to sharply decreased crude oil prices (which were trading near $70 per barrel the first five weeks of 2006, but yesterday were as low as $60.20). The nationwide average price for self- serve regular gasoline is $2.274, which is nearly 5 cents lower than the middle of January, but still more than 38 cents higher than one year ago.

"The drop in oil prices appears to be to be due to continued growth in domestic oil inventories," said Gail Weinholzer, AAA Minnesota/Iowa spokesperson. "In addition, there is a realization that efforts to deal with Iran's nuclear ambitions may be protracted over many months and an industry belief that they are unlikely to suspend their oil shipments any time soon."

Our lower gas prices, however, should not present a false sense of security to consumers. There still is a great deal of seasonal maintenance to be performed on our country's refineries during March and April, and this period usually results in lower fuel inventories and upward pressure on pump prices. In addition, geopolitical tensions and weather concerns still are on the horizon.

Reports for February 15, 2006, reflect the following average prices per gallon for self-serve, regular unleaded gas:

                                   Current        Month Ago      Year Ago
  National                          $2.27           $2.32         $1.89
  Iowa                              $2.20           $2.23         $1.85
  Cedar Rapids                      $2.21           $2.25         $1.84
  Davenport                         $2.21           $2.28         $1.88
  Des Moines                        $2.15           $2.17         $1.79
  Sioux City                        $2.20           $2.24         $1.85
  Waterloo                          $2.14           $2.14         $1.86

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, and can be found at http://www.fuelgaugereport.com/ .

AAA (www.aaa.com) 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.