AAA Reports Gas Prices Surge to New Highs as Motorists Plan for Memorial Day

MINNEAPOLIS, May 18, 2004 -- According to AAA, the national average price of self-serve regular unleaded gasoline is just shy of the $2 mark at $1.999 per gallon. This is nearly 50 cents higher than it was one year ago, when the average was $1.503.

In addition, average pump prices are in excess of $2 in 22 states, with California motorists paying the most at $2.30.

Causes for the recent gas price surges can be traced to oil production cutbacks made by OPEC countries in March and April, rising demand for gasoline as the U.S. economy improves and the summer driving season approaches, and the nation's complex system of local clean gasoline regulations. With crude oil trading near $42 per barrel, OPEC has called an emergency meeting next weekend to discuss increasing output by six percent. If agreed to, it may help bring oil prices back below $40 per barrel and reduce some of the upward pressure on American gas prices.

"If gas prices stay above $2 for most of the summer, motorists may begin altering their driving patterns," said Dawn Duffy, AAA spokesperson. "A recent AAA membership survey indicated that, although high pump prices are not expected to keep Americans from traveling, these costs will affect the number of trips taken, the distance traveled and the mode of transportation used."

Altered behavior does not include canceling Memorial Day driving trips, however, as a record 30.9 million vacationers are projected to drive to their destination, an increase of 3.4 percent from last year.

Reports for May 18, 2004, reflect the following average prices per gallon for self-serve, regular unleaded gas:

                                    Current        Month Ago      Year Ago
   National                         $1.999          $1.803        $1.503
   Minnesota                        $1.997          $1.788        $1.519
   Duluth                           $1.968          $1.775        $1.514
   Minneapolis/St. Paul             $2.017          $1.825        $1.535
   Rochester                        $1.982          $1.772        $1.514
   St. Cloud                        $1.978          $1.745        $1.540

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 more than 171,000 members in Hennepin County.