Georgia gasoline prices fall on drop in demand and oil price

Gasoline pump resting in its cradleGasoline pump (Photo Cobb County Courier/Larry Felton Johnson)

Georgia gasoline prices, which began a steep rise after the Russian invasion of the Ukraine, have fallen steadily over the past week as demand and oil prices dropped.

According to the weekly press release from Montrae Waiters the spokeswoman for AAA – The Auto Club Group, Georgia drivers are now paying an average of $4.14 per gallon.

“Georgians are starting to see some relief at the pumps compared to a week ago,” said Waiters. “The drop in gas demand and the decrease in crude oil prices has contributed to lower pump prices.”

Prices in Cobb County

Prices in Cobb County have not dropped as rapidly.

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The price of a gallon of regular unleaded in Cobb County is $4.226 at the time of this writing, about 12 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.

AAA’s weekly report stated the following about national gas and oil trends:

Since last Monday, the national average for a gallon of regular gasoline has decreased by 7 cents to $4.25. After crude prices spiked in response to Russia’s invasion of Ukraine, and in reaction to China announcing new lockdowns alongside rising COVID-19 infection rates.

The price of oil has moved lower due to market concerns that crude oil demand will decline, as it did in 2020 when countries sought to curb COVID-19 transmission rates.

Additionally, the Energy Information Administration (EIA) reported that total domestic crude stocks increased by 4.3 million barrels last week to 415.9 million barrels. The recent growth in total domestic crude inventories also contributes to the current reduction in crude prices.

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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