Gas prices inching higher -

Georgia gas prices rose 3.5 cents last week. Sunday’s state average of $2.48 is 18 cents more than a month ago, and 30 cents more than this time last year. Georgia has the 20th-lowest state average in the nation.

The most expensive gas price averages in Georgia are in Atlanta ($2.51), Savannah ($2.51), and Brunswick ($2.50)
The least expensive gas price averages in Georgia are in Augusta-Aiken ($2.40), Catoosa-Dade-Walker ($2.41), and Warner Robins ($2.41)

Last week, stock market gasoline prices reached levels not seen since Hurricane Harvey passed over the Gulf Coast, causing refinery outages and higher gas prices. Based on current wholesale levels, pump prices could soon return to the $2.60s in Florida, $2.50s in Georgia, and the high $2.40s in Tennessee; unless market prices retreat this week.

Average Gas Price in January
	2014	2015	2016	2017	2018
National	$3.30	$2.11	$1.90	$2.33	$2.52
Florida	$3.38	$2.18	$1.92	$2.37	$2.49
Georgia	$3.22	$2.07	$1.82	$2.23	$2.41
Tennessee	$3.11	$1.95	$1.69	$2.12	$2.33

HOW OIL PUSHES PRICES AT THE PUMP

The price of oil climbed another $3 last week, to set a new multi-year high. Friday’s close of $66.14 per barrel is the highest daily settlement since December 2014. Oil prices are up $15/b since October, largely due to a tightening global oil market. Ongoing declines in U.S. inventories and a weakening U.S. dollar led to last week’s increase. U.S. crude stocks fell for a record 10th-consecutive week, reaching the lowest level since February 2015, according to the EIA.

High oil prices are preventing gas prices from taking their seasonal winter retreat. Oil prices have always played a significant role in what motorists pay at the pump. In fact, about half the price of gasoline is steered by the cost of crude. Back in 2014, gas prices plunged from $3.69 down to $2 and below by the end of January 2015. During that time, oil prices tanked, falling from $106/b to $45/b. That was a result of the oil market becoming oversupplied with crude, as U.S. production reached its highest levels in decades. Now, the adverse is happening. Although U.S. production levels are strong, global oil inventories are tightening, largely due to OPEC’s agreement to reduce output by 1.8 million barrels per day.

“There appears to be a recipe for even higher gas prices brewing, and the rising price of oil is just one of the key ingredients,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “During the next few months, refineries will randomly conduct maintenance on their equipment and switch to a more-expensive-to-produce summer blend gasoline. During their downtime, these refineries reduce the amount of gasoline they put out into the market. Historically, that has caused gas prices to rise 30-75 cents, as a result. It’s unclear exactly how the market will absorb these shifting fundamentals, but motorists may want to be ready. One remaining beacon of hope is that domestic oil production would ramp up sooner than later, and end the upward momentum on oil prices.”

Gas Price Tools for Reporters/Consumers

GasPrices.AAA.com – Daily national, state, and metro gas price averages.
AAA Mobile app – Free app that shows current prices at a gas station near you.

Highs and Lows of 2017*

National: the highest average price for gasoline was $2.67 on September 8. The lowest was $2.23 on July 5.
Florida: the highest average price in was $2.73 on September 9. The lowest was $2.13 on July 17.
Georgia: the highest average price was $2.76 on September 12. The lowest was $2.08 on July 5.
Tennessee: the highest average price was $2.60 on September 10. The lowest was $1.99 on July 5.

CURRENT AND PAST PRICE AVERAGES

Regular Unleaded Gasoline

	Sunday	Saturday	Week Ago	Month Ago	One Year Ago	Highest Price on Record
National	$2.577	$2.575	$2.537	$2.462	$2.278	$4.114 (7/17/2008)
Florida	$2.553	$2.553	$2.544	$2.421	$2.312	$4.079 (7/17/2008)
Georgia	$2.482	$2.478	$2.446	$2.297	$2.180	$4.164 (9/15/2008)
Tennessee	$2.400	$2.399	$2.357	$2.247	$2.080	$4.118 (9/15/2008)
Click here to view current gasoline price averages

Gas Price Survey Methodology
AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

About The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, financial services and travel offerings to over 9.4 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 57.7 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. AAA clubs can be visited on the Internet at AAA.com.