The national average price of self-serve regular gasoline has ended a nearly four-week run above the $2 per gallon level, falling to $1.980 according to AAA�s daily, online Fuel Gauge Report (www.fuelgaugereport.com). The national average has fallen 7.4 cents from the record of $2.054 it reached on May 26, but remains 47.7 cents per gallon higher than it was one year ago when the average price was $1.503. Average gasoline prices still exceed $2 per gallon in 22 states and the District of Columbia.

The recent decline can be attributed to improving inventories of gasoline and lower prices for crude oil, according to AAA. Crude oil prices fell from nearly $42 per barrel to the current level of around $38 per barrel following the June 3 announcement by OPEC that it would increase its production quota in July and August. Continued violence in Iraq and Saudi Arabia keep significant upward pressure on crude oil prices, though. AAA expects U.S. gasoline demand to remain strong as the summer drive season begins in earnest.

Since mid-May, the national average gasoline price is down 1.9 cents per gallon. On a regional basis, gasoline prices have fallen the most in the last month in the West, where prices are 12.6 cents lower and average $2.109 per gallon.

Prices are down an average of 10.6 cents per gallon in the Great Lakes since mid-May to $1.952 per gallon. Prices have fallen 8.9 cents in the Midwest to $1.899. In the Southwest, prices are 2.7 cents lower, averaging $1.916. Prices are largely unchanged in the Southeast � down 0.7 cents to $1.881.

Average prices have increased the most in New England, rising 7 cents per gallon to $2.078. In the Mid-Atlantic, the average is up 3 cents to $2.006. Nationwide, the price of self-serve, mid-grade averages $2.103 per gallon, a drop of 2.0 cents per gallon since last month, but 50.8 cents per gallon higher than last year. Self-serve premium averages $2.179 per gallon, down 2.1 cents since mid-May and 52.6 cents higher than one year ago.

Average regional prices for self-serve regular in mid-June of last year were: West, $1.592; Great Lakes, $1.572; New England, $1.515; Mid-Atlantic, $1.479; Southwest, $1.484; Midwest, $1.516; and Southeast, $1.419.

The national average prices for self-serve regular unleaded gasoline for AAA's mid-June survey for the last five years are: 2003, $1.514; 2002, $1.381; 2001, $1.661; 2000, $1.664; and 1999, 1.142 cents.

AAA's Fuel Gauge Report is based on data from Oil Price Information Service, the nation's most comprehensive source of petroleum pricing information. AAA purchases the data and makes it available free on the Internet as a public service. Average daily prices for the nation, all 50 states and more than 250 localities are available for all grades of gasoline, making the site the most current and complete public source of fuel price information.

As the nation's largest motoring and leisure travel organization, AAA provides 47 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at www.aaa.com.

# # # Media Contact: Justin McNaull +1 (202) 942 2079 jmcnaull@national.aaa.com