PHOENIX - Motorists are continuing to feel a pinch at the pump as the price of fuel rises for the 47th and 51st consecutive day state and nationwide, respectively.
Arizona motorists are currently paying an average of $2.659 for a gallon of regular unleaded gasoline, an increase of more than a dime from last week. Tucson drivers continue to pay the least for fuel in the state with an average of $2.468 per gallon, while drivers in Flagstaff pay the most to fill their tanks at $2.756 per gallon. Today's nationwide average is $2.685 per gallon, an increase of just over a nickel from last week.
This week, the price of crude oil maintained its position in the low $70 range while the government's weekly report indicated a drop in commodity supplies, a slight increase in fuel consumption as well as an increase in refinery activity. Also impacting crude prices this week was the aftermath of the Iranian elections. Continued unrest in Iran, the second largest oil producing nation in the Organization of Petroleum Exporting Countries, has resulted in a higher commodity price, at least temporarily.
“While the current unrest in Iran underscores market volatility, it is also important to note that the current run up in crude and subsequent fuel prices continues to be fueled by investor optimism, as opposed to actual market fundamentals,” said Linda Gorman, public affairs director for AAA Arizona. “While Arizona pump prices remain $1.426 below year ago levels, prices have increased by more than 65 percent since January, despite healthy supplies and unimposing demand.
“However, this rally can only last so long, considering that it continues to lack the support of supply and demand fundamentals,” added Gorman.
South Carolina continues to hold on to the nation's lowest fuel price this week with an average of $2.503. California motorists are paying the most for fuel in the lower 48 states with an average of $3.025 per gallon.
Nationally, retail gas prices climbed higher for the 51st straight day, and oil prices wavered with some signs of improvement in the economy as a whole.
‘‘Four-week gasoline demand was up 1.14 percent, confirming last week's foray into positive territory and showing the first genuine sign that the economy is really improving,'' Cameron Hanover analysts said in a report. ‘‘Even with millions not going to work, Americans are using more gas again.''
