Thursday, 20 September, 2018

Gas Prices Rise 0.6 Cents In Chattanooga

2018 kicks off with highest national gas prices since 2014 Your money: Gas prices expected to rise in 2018
Johnnie Parks | 08 January, 2018, 16:56

The statewide gas price average in Texas is now $2.24 for a gallon of regular unleaded fuel, according to the AAA Texas Weekend Gas Watch.

At $2.49, the national gas price average is the most expensive seen at the start of a new year since 2014, when gas prices were more than $3/gallon. The nation's yearly gasoline bill will rise to $364.6 billion, some $25 billion higher than what motorists spent past year.

Average retail gasoline prices in Chattanooga have risen 0.6 cents per gallon in the past week, averaging $2.16 per gallon on Sunday, according to GasBuddy's daily survey of 170 gas outlets in Chattanooga. That price is three cents more than last week and is eight cents more per gallon compared to this day previous year. Actual: $2.39. In 2016, the forecast called for a yearly national average of $2.28.

Oil prices crashed to below $30 a barrel in February 2016 but have slowly increased since then, and Patrick DeHaan, head of petroleum analysis at GasBuddy, points to the Organization of the Petroleum Exporting Countries as the big reason why.

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"The saving grace is that U.S. oil producers have filled some of the void left as a result of OPEC cuts, but that will still mean oil prices command a premium to prior years, and motorists will be paying more for fuels as a result", DeHaan says. "Look what impact Hurricane Harvey and Irma had on gas prices and availability".

He added that while gasoline prices overall remain affordable, one aspect that continues to worsen is the gap between what stations are charging.

"It's nothing short of insane how one station might sell gasoline 20 to 40 cents lower or higher than a nearby competitor", De Haan notes. "In addition to GasBuddy data showing spreads have risen to record levels, I've heard hundreds of complaints of motorists who get stuck at the pricier station, drive down the street and see it far cheaper". Meanwhile, US refineries have kept pace, operating at 95.7% of operable capacity for the week ended December 22, up from 94.1% a week earlier, and the highest for that week of the year since 1998, according to EIA.

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