Gas prices in Georgia continued the recent steady decline, with a significant drop over the past week.

According to AAA’s weekly report, gasoline prices in Georgia decreased by eight cents over the past week, reaching an average cost of $3.06 per gallon for regular unleaded.

“Gas prices are down significantly in parts of the state,” said Montrae Waiters, AAA-The Auto Club Group spokeswoman. “Low demand post-Labor Day, crude oil prices trending under $70, and no major storms in the gulf threatening refineries, keep pump prices low for now.”

What will you learn by reading below?

1. How do prices in Cobb County compare to the rest of the state
2. What are the national trends in gasoline prices?
3. What causes fluctuations in gasoline prices?
4. How does AAA arrive at its price estimates?

Gasoline prices in Cobb County

The price of a gallon of regular unleaded in Cobb County is $3.125, roughly seven 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:

Falling Pump Prices Keep on Giving

Since last Monday, the national average for a gallon of regular gasoline decreased by 6 cents to $3.27 (subject to change overnight). After idling over the Labor Day weekend, the national average for a gallon of gas resumed its pace of daily declines. Key contributors are low gas demand and the plunging cost of oil, which is struggling to stay above $70 a barrel. 

According to new data from the Energy Information Administration (EIA), gas demand fell last week from 9.30 million barrels a day to 8.93. Meanwhile, total domestic gasoline stocks rose slightly from 218.4 to 219.2 million barrels, and gasoline production increased last week, averaging 9.7 million daily. Falling gasoline demand and oil costs will likely keep pump prices sliding.

What causes fluctuations in gasoline prices?

According to the U.S. Energy Information Administration (EIA), the price of crude oil is the main factor affecting the price of gasoline.

“Strong and increasing demand for gasoline and other petroleum products in the United States and the rest of the world can place intense pressure on available supplies,” the EIA website states.

According to the EIA, other price factors can include “disruptions in crude oil supplies, refinery operations, or gasoline pipeline deliveries.”

There are also seasonal changes in demand that cause price fluctuations throughout the year.

For more information on the price considerations for crude oil and gasoline, visit the EIA website.

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.”