Gas Prices Drop For First Time in 25 Days

Chattanooga (WDEF) – The national average price for a gallon of gas dropped on Sunday for the first time in 25 days.

Over that period, prices climbed 30 cents in Georgia and 28 cents in Tennessee.

The Sunday decline follows oil hitting the highest mark of the year so far.

"This is great news for motorists who are shaping their Memorial Day travel plans," said Mark Jenkins, spokesman, AAA – The Auto Club Group.

"Typically it’s not the price during the holiday weekend, but gas prices in the weeks leading up to the holiday that have the biggest effect on motorists’ plans. Gas prices typically hit their yearly peak this time of year, but the price of oil has been on an upward trend for eight consecutive weeks, so gas prices may not hit their ceiling until oil prices find equilibrium."

Triple A says the rise in oil prices can be blamed on declining U.S. rig production and a weaker U.S. dollar.

But the price surge may not continue for long.

They say some market watchers are pointing to a global oil glut.

"Ultimately, high oil production should lead to lower gasoline prices throughout the summer, unless there are unexpected supply issues," Jenkins said. "AAA remains confident that gasoline prices will not reach $3 a gallon this year."

For the week, gas prices rose six cents in Georgia last week to an average of $2.55.

In Tennessee, it climbed just one cent to $2.41.

Chattanooga’s prices have hovered around $2.41 all week.

Categories: Local News

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