Survey: gas prices down 20 cents in past week in Chattanooga

CHATTANOOGA, Tenn. (WDEF) – Have you noticed a decrease in gas prices in our area?

According to GasBuddy’s most recent survey, the average price of gas in Chattanooga is $2.82. It has gone down 20 cents in the past week.

This is roughly 50 cents lower than a month ago, and well below the national average $3.50.

There could be a variety of reasonings according to experts.

Patrick De Haan, Head of Petroleum Analysis for Gas Buddy, said, “Usually, we don’t see gas prices peak in the summer, but traditionally in the spring. Why not in the spring and not the summer? Because refinery maintenance is happening in the spring. Usually by Memorial Day all of that work is behind us.”

Another potential cause of the drop in gas prices is the rise in the cost of everything else. 

Local gas station owner Steve Ray said, “Gasoline is such a volatile commodity. It can go up 10 cents in a day. It can go down 20 cents in a day. Right now, it’s just a supply and demand problem… I know over the Memorial Day holiday we didn’t see near the travel that we used to see. I think people are staying home more, and they’re just not going on vacations right now. I think that is an indication of where we are at in the economy.”

Data backs up the drop in demand.

De Haan said, “Demand is pretty weak for this time of year. 8.6 million barrels a day according to our data last week. Typically, that number would be above 9 million barrels a day.”

Both say you should expect prices to remain steady but beware of any sudden shock to gas prices such as a hurricane or escalation in conflict in the Middle East.

Ray said, “If you tried to book a flight. If you try to book a motel room. You get sticker shock because it’s just so expensive to go anywhere now, and those are the fun things we like to do. As long as funflation is at this amount, people aren’t going to go, and therefore gasoline is going to stay low.”