Georgia gasoline prices spiked sharply over the past week.
According to the weekly report from AAA, the average price of regular unleaded gasoline has increased 12 cents in the past week, and is currently $3.26 per gallon. This is 1 cent higher than a month ago, and $1.03 lower than this time last year. It now costs $48.90 to fill a 15-gallon tank of regular gasoline, which is $1.00 less than a year ago.
“Georgians experienced unwelcomed spikes at the pumps this weekend,” said Montrae Waiters, AAA-The Auto Club Group spokeswoman. “Less expensive oil and fewer people fueling usually indicates lower pump prices. However, there is some upward pricing pressure now due to the switch to summer blend gasoline, which may add about five to ten cents per gallon. But if demand and oil costs remain low, this recent price bounce may fade.”
Gasoline prices in Cobb County
The price of a gallon of regular unleaded in Cobb County is $3.25, slightly less 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 national trends?
AAA’s weekly report stated the following about national gas and oil trends:
Gas Prices Surge Higher, but for How Long?
Since last Monday, the national average for a gallon of regular gasoline has increased by 7 cents to $3.47 (subject to change overnight). However, this price pop could be short-lived, as demand and the global cost of oil have fallen recently. According to data from the Energy Information Administration (EIA), gas demand declined from 9.11 million to 8.56 million barrels a day last week. Meanwhile, total domestic gasoline stocks decreased by 1.1 million barrels to 238.1 million barrels. Although gas demand has declined, fluctuating oil prices have increased pump prices amid tighter supply.
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI decreased by 92 cents to settle at $76.66. Crude prices decreased yesterday due to weaker domestic oil demand expectations for 2023 after the Chair of the U.S. Federal Reserve indicated that additional interest rate increases are likely. The market is concerned that rising interest rates could tip the U.S. economy into a recession, which would lower oil demand amid reduced economic activity. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 1.7 million barrels to 478.5 million barrels.
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.”