AAA Reports Gas Prices Up Due to Crude Oil, Cold Weather

MINNEAPOLIS, Jan. 13, 2004 -- Higher crude oil prices and colder weather have pushed gasoline prices to their highest levels ever recorded in the month of January. The nationwide average price of self-serve regular gasoline is up 8.7 centers per gallon since the middle of last month, jumping from $1.474 to $1.561. This also is the highest average nationwide pump price since October 23, 2002.

Topping $35 per barrel today, crude oil is trading at the highest oil prices since before the start of Operation Iraqi Freedom in March 2002. This high price coincides with currently low oil inventories in the U.S. In addition, refineries tend to emphasize the production of fuels needed to generate electricity and heat homes when the weather turns very cold across a large portion of the country, adding to the demands put upon our resources.

"Looking ahead and anticipating where gas prices will go in the near future is difficult," said Dawn Duffy, AAA spokesperson. "The passing of the winter holidays without a major terrorism incident in Europe or the United States may affect the futures market and cause world oil prices to fall. On the other hand, the current weak U.S. dollar is providing an incentive to OPEC for keeping oil prices high."

Reports for January 13, 2004, reflect the following average prices per gallon for self-serve, regular unleaded gas:

                           Current     Month Ago    Year Ago
   National                 $1.56        $1.47        $1.47
   Minnesota                $1.57        $1.46        $1.45
   Duluth                   $1.59        $1.47        $1.44
   Minneapolis/St. Paul     $1.57        $1.47        $1.46
   Rochester                $1.57        $1.42        $1.39
   St. Cloud                $1.57        $1.43        $1.42

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, which has 4.1 million members in eight Midwest states. AAA Minneapolis serves nearly 170,000 members in Hennepin County.