Fuel Brief

FRIGID TEMPERATURES THROUGH MOST OF U.S. AND A WEAK DOLLAR PUSH OIL & RETAIL GASOLINE PRICES HIGHER

TAMPA, Fla. (Jan. 10, 2010) – Continuing a price trend of recent weeks, retail gasoline prices have risen to their highest level in 15 months as frigid weather, a weak U.S. Dollar, rising crude oil prices, and scheduled refinery shutdowns all contribute to higher prices at the pump.

According to Retail Fuel Watch, in the past three weeks, wholesale prices have shot up by nearly 15 cents per gallon. Gasoline prices have been pushed higher by stronger oil futures prices and a weak dollar that encourages traders to pour money into commodities as a hedge against inflation.

The U.S. average price of unleaded regular gasoline is now $2.74 per gallon, up 8 cents in the past week; while average prices in Florida ($2.78), Georgia ($2.66) and Tennessee ($2.63) have increased by 10 cents, 13 cents and 11 cents respectively this past week.

“Crude oil and retail gasoline prices are rising for a variety of reasons right now, and the harsh weather is just one component,” said Gregg Laskoski, managing director of public relations, AAA Auto Club South. “It doesn’t help that the dollar is weakening at the same time refineries have begun planned shutdowns for seasonal maintenance. This occurs just about every year at this time because demand for gasoline and diesel is traditionally pretty weak in January and February.”

Crude oil on the New York Mercantile Exchange closed Friday at $82.75 per barrel.

CURRENT AND PAST PRICE AVERAGES

Regular Unleaded Gasoline

Current Week Ago Month Ago Year Ago

National:                    $2.743            $2.660             $2.623               $1.790

Florida:                      $2.781            $2.686             $2.679              $1.830

Georgia:                     $2.669            $2.536             $2.509             $1.690

Tennessee:                 $2.631            $2.520             $2.501              $1.661

AAA’s Daily Fuel Gauge Report (fuelgaugereport.com) is updated each day and is the most comprehensive; reflecting actual prices from credit card transactions within the past 24 hours at two-thirds (100,000 stations) of the gasoline stations in the U.S. Its accuracy is unparalleled.

How much are you paying for gasoline taxes in Florida/Georgia/Tennessee? Use this link: http://www.aaasouth.com/acs_news/gas_taxes.asp to find out.

Next Fuel Price Brief:  Sunday, Jan. 17, 2010