The cost of filling up at the pump in Georgia continues to rise, with the average gas price now reaching $3.66 per gallon for regular unleaded.
This represents an increase of 11 cents compared to last week, 44 cents compared to last month, and 2 cents compared to this time last year. To fill a 15-gallon tank, drivers now have to shell out almost $55.00, which is 30 cents more than what they paid a year ago.
The primary factor contributing to the surge in prices is the cost of oil, which was hovering around $80 per barrel last week but has since softened. As a result, there is hope that gas prices may start to decrease in the near future.
“Last month’s extreme heat played a role in the recent spike in gas prices due to some refineries pulling back, but now operations appear to be getting back to normal,” said Montrae Waiters, AAA-The Auto Club Group spokeswoman. “Coupled with moderate demand and declining oil prices, this may take the steam out of the tight supply price jolts we’ve seen lately.”
Why do heat waves cause gasoline prices to increase?
Extreme heat can impact the production and refining processes of gasoline.
Oil refineries, which convert crude oil into gasoline, may experience operational issues or even shutdowns during heat waves due to the strain placed on their equipment.
This can disrupt the supply chain and limit the availability of gasoline, leading to higher prices.
Furthermore, heat waves can also impact the transportation infrastructure that is used to deliver gasoline, such as pipelines or roads.
If these channels face any damage or interruptions, it can lead to delays in delivering gasoline to gas stations, causing prices to increase.
For more information, this recent article by CNN can be helpful.
Gasoline prices in Cobb County
The price of a gallon of regular unleaded in Cobb County is $3.698, roughly 4 cents more 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:
“Since last Monday, the national average for a gallon of regular gasoline has increased by 7 cents to $3.82 (subject to change overnight).
“The national average for a gallon of gas has continued its summer U-turn, but price increases have slowed, and more relief could be on the way.
“According to data from the Energy Information Administration (EIA), gas demand decreased slightly from 8.94 to 8.84 million barrels a day last week.
“Meanwhile, total domestic gasoline stocks increased by 1.5 million barrels to 219.1 million barrels. Lower gas demand amid increasing supply will likely help to slow price increases in the days ahead.”
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.”