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Tucson gas prices are near the top

By Dale Quinn
Arizona Daily Star
Tucson, Arizona | Published: 11.14.2008
After enjoying some of the lowest prices in the country, Tucsonans are paying more to fuel up their cars than most drivers nationwide.
The average price of a gallon of regular gasoline in Tucson on Thursday was 11 cents higher than the national average, according to the automobile club AAA. Since peaking at $4.11 July 17, the national price has been plunging — 98 cents in the last month alone.
In Tucson, the average price Thursday for a gallon of regular was $2.29, and the state reached a 20-month low of $2.39, which had drivers and station owners breathing a sigh of relief.
"With as bad as everything has gotten, there is some relief at the pump," said Scott Bronson, the general manager of Coxco Fuel. "And I think (the price) will come down for at least the next couple weeks."
But according to AAA, only six states had higher gas prices than Arizona, and eight states were paying $2 or less for a gallon of regular. This contrasts from May, when Arizona's average was the lowest and Tucson could boast having some of the cheapest gas in the country. Of course, that was when drivers in some states were forking over nearly $4 per gallon.
It's unusual for Arizona to have the lowest prices, said Michelle Donati, a spokeswoman for AAA Arizona.
"Normally, our statewide average is above or near the national average because of limited access to fuel — we don't have a refinery in the state — and we're one of the fastest-growing states in the country," Donati said.
Tucsonans paid less than the rest of the nation as prices climbed and California drivers reduced consumption, Donati said. That increased the fuel supply to Arizona, forcing down the price here, she said. As refiners in California decreased production, Arizona's prices got closer to the national average.
Then, after Hurricane Ike swept across the Gulf of Mexico in early September, gasoline supply to several Southeastern states was disrupted and prices there climbed. Arizona's supply wasn't affected, so its price stayed below the national average, Donati said.
This month, prices in Arizona eclipsed the national average, but they should drop when the Phoenix area switches to its winter blend of fuel.
During summer months, stations in the Phoenix metropolitan area are required to sell a cleaner-burning, more expensive fuel blend, Donati said.
Usually, Phoenix switches to the winter blend in mid-October, but this year the U.S. Environmental Protection Agency delayed the switch until Nov. 16 because of the supply issues created by Hurricane Ike and a fire at a fuel-distribution center.
Though Tucson doesn't use that blend, the price here should drop because more of the conventional blend will be available, Donati said.
Even if higher than the national average, the Tucson price is cheap compared to what drivers were paying a few months ago, said Walk Perry as he fueled up his pickup truck Thursday.
A construction manger from Park City, Utah, Perry said with high gas prices and a lagging economy his business building ski lifts has taken a hit. And he's not the only one affected by the high prices, he said.
"I travel a lot, and I noticed there's a lot less traffic on the road," said Perry, 54.
The fewer number of cars on the road has reduced demand for gasoline and played a part in prices dropping nationwide.
Arizona drivers burned about 240 million gallons of gas in September 2007, in contrast to the same month this year when drivers consumed about 229 million gallons.
The drop in fuel consumption coupled with high credit-card fees meant that station owners struggled when prices per gallon hovered around $4, said Bronson, Coxco Fuel's general manager. The independent, family-owned company has three stations in Tucson.
Bronson said station owners kept an eye on what competitors charged and scrutinized their own costs before settling on a price. About the second week in October, Bronson said, he began to feel some relief, and fuel sales increased.
And people are more cheerful when they're pumping gas.
Susan Patton, a 60-year-old administrative assistant, said when prices got high she opted not to fill her car up with premium fuel, even though her mechanic recommended it.
Now that the price has dropped, she has started using the higher-octane fuel.
"I had compromised my poor little engine," she said. "So I'm happy now."
● Contact reporter Dale Quinn at 573-4197 or dquinn@azstarnet.com.