Georgia gasoline continues to hover just under $3 per gallon

Georgia gasoline demand drop due to COVID illustrated by closeup of a gasoline pump nozzleGasoline pump nozzle (photo by Larry Felton Johnson)

Georgia gasoline prices are stable at just under $3 per gallon on statewide average.

According to the weekly press release from Montrae Waiters the spokeswoman from AAA – The Auto Club Group, Georgia drivers are now paying an average of $2.97 per gallon for unleaded gasoline as of Monday morning.

“Georgia gas prices saw minimal or no change at the pumps across the state,” said Waiters in her weekly update. “August could prove to be more expensive if crude oil prices increase, driven by market concerns of rising COVID case numbers and how that could negatively affect global demand in the near future.”

How do Cobb County prices compare?

The price of a gallon of regular unleaded in Cobb County is $2.988 at the time of this writing, about two cents more expensive than the statewide average.

It is always possible to find lower gas prices than the average by comparison shopping or using tools like http://gasbuddy.com.

What are the trends at the national level?

AAA published the following observations about gasoline and oil prices at the national level:

NATIONAL AVERAGE INCREASES AS DEMAND INCREASES

Since last Monday, the national average for a gallon of regular gasoline has increased by 1 cent to $3.18.

In its latest weekly report, the Energy Information Administration (EIA) reported that gas demand increased from 9.33 million barrels a day to 9.78 million barrels a day last week. Not only is the demand reading very robust for peak driving season, but 2% higher than the same time period in 2019. Additionally, total domestic gas stocks declined by 5.3 million barrels to 228.9 million barrels. These trends, combined with high crude prices, have helped to increase pump prices. As crude prices remain high, though back below $70 barrels, AAA expects the national average to remain above $3 per gallon throughout the summer. 

OIL MARKET DYNAMICS

At the close of last Friday’s formal trading session, WTI increased by 94 cents to settle at $69.09. Prices increased today due to tension in the Middle East, which heightened after Israeli military jets struck alleged rocket launch sites in Lebanon. The incident was likely in retaliation for two crew members who were killed after a tanker off the coast of Oman was attacked. Israel blames Iran for the tanker attack, but Tehran has denied any involvement. According to recent reporting, the UN Security Council will meet in a closed-door session, likely soon, to discuss rising tension in the region. Today’s price increase comes after crude prices declined for three days due to market concerns about the impact of rising global COVID-19 infection rates on crude demand. Crude prices also declined after EIA’s latest report showed that total domestic crude stocks increased by 3.6 million barrels to 439.2 million barrels last week. 

How does AAA determine gas prices?

According to AAA:

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.

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