Price at pump lowest since April

Aug 1, 2016

Credit Jenn Durfey / Flickr

Gas prices have fallen three cents since last weeks' Gas Price Brief, reaching today’s average price of $2.14 per gallon, which is the lowest mark since April and the lowest price for this date since 2004. Today’s price is 15 cents less than one month ago, 53 cents less than last year, and $1.38 cheaper than this same date two years ago. While gas prices are likely to remain relatively low heading into the fall, there is potential for an increase if there is an unexpected impact to supply or distribution, such as a hurricane.

"Motorists are seeing some of the cheapest gas prices for this time of year in over a decade," said Josh Carrasco, spokesman, AAA - The Auto Club Group. "Abundant fuel supplies and declining oil prices are the main contributors to the drop in price at the pump. It's between $5-$7 cheaper to fill your tank compared to last year, and those savings are motivating more Americans than ever to take a road trip this summer."

Florida gas prices have declined for 54 consecutive days, falling 27 cents during that time. Gas prices have been falling at a rate of 3-5 cents a week and if prices continue on their downward trend we should see the state average dip below $2 in the next two weeks. The average price of a gallon of regular gasoline is $2.08 which is 4 cents cheaper than a week ago, 17 cents lower than a month ago, and 45 cents less than this time last year. The lowest regional averages in the state are Orlando ($1.965), Tampa-St. Pete ($1.981), and Jacksonville ($1.987).

Georgia gas prices have declined for 52 of the past 55 days, falling 28 cents over that period. Gas prices fell below the $2 mark on July 27th for the first time since March. The average price of a gallon of regular gasoline is $1.99 which is 1 cent cheaper than a week ago, 16 cents lower than a month ago, and 52 cents less than this time last year. The lowest regional averages in the state are Albany ($1.861), Macon ($1.891), and Valdosta ($1.924).

Tennessee gas prices have declined for 53 consecutive days, dropping 30 cents during that time. Gas prices have been below $2 since July 15th and only 1 in 10 gas stations in the state are selling gas above that price. The average price of a gallon of regular gasoline is $1.89 which is 4 cents cheaper than a week ago, 19 cents lower than a month ago, and 49 cents less than this time last year. The lowest regional averages in the state are Chattanooga ($1.751), Johnson City-Kingsport-Bristol($1.803), and Clarksville-Hopkinsville ($1.814).

Percent of gas stations with prices under $2 a gallon

  • Florida: 41 percent
  • Georgia: 68 percent
  • Tennessee: 88 percent

Despite paying the lowest seasonal prices in 12 years, there is always the possibility that unexpected events could lead to higher prices later this summer. For example, crude oil costs could rise due to disruptions in supply, stronger than expected economic growth, or geopolitical tensions overseas. In addition, regional prices could increase due to refinery problems, production cuts, stronger than anticipated demand or hurricanes that impact distribution and production. At the close of Friday’s formal trading session on the NYMEX, WTI was down $1.53 on the week to settle at $41.60 per barrel.