International events caused an unwelcome pre-Christmas economic worry. The week before Christmas saw a five-cent rise in the average cost of a gallon of regular unleaded in Georgia.

The price now stands at $3.01 per gallon.

This has been driven at least in part by a rise in the cost of oil, which was in turn brought on by the recent attacks on Red Sea shipping. The attacks were carried out by Houthi militants, reportedly in retaliation for the Israeli siege of Gaza. The Houthi movement, also known as Ansar Allah, are insurgents who control most of Yemen’s north, including the nation’s capital, Sana’a.

For an explanation of the Houthi insurrection, and why it is affecting the global economy, read this article from The Conversation.

Monday’s state average now stands at $45.15 to fill a 15-gallon tank of regular gasoline. This represents a significant 22-cent increment from a month ago, and a 31-cent hike from the same period last year.

“The upward trend in crude oil prices, and attacks on ships in the Red Sea caused gas prices to increase across the country,” said Montrae Waiters, AAA-The Auto Club Group spokeswoman. “This is not the news Georgians wanted to hear ahead of the new year, but unless wholesale gasoline prices change course and drop considerably, pump prices may continue to rise.”

Gasoline prices in Cobb County

The price of a gallon of regular unleaded in Cobb County is $3.06 this morning,   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 6 cents to $3.12 (subject to change overnight). This marks the first weekly increase since September. According to data from the Energy Information Administration (EIA), gas demand dipped slightly from 8.86 to 8.75 million barrels a day last week. Meanwhile, total domestic gasoline stocks increased slightly by 2.7 million barrels to 226.7 million barrels. Robust gas demand and elevated oil prices have jolted pump prices as the US enters winter. With drivers heading to their holiday destinations, they may continue to see pump prices fluctuate slightly during this heavy travel season.  

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.”