Gas prices finally falling, but how far will they go after hurricanes?

CHATTANOOGA (WDEF) – Gas prices hit a three year high last week, but the worst is behind us.

The question now is how far will prices drop again.

GasBuddy.com reports that prices have fallen 2.8 cents over the last week in the Chattanooga area to $2.54 a gallon.

The national average dropped 4.7 cents.

But as the supply returns to normal after hurricanes Harvey and Irma, how low will gas prices go?

Here is the GasBuddy.com take:

“As we welcome back winter gasoline across most of the country, gasoline production has continued to recover after Harvey, leading much of the country to enjoy falling gasoline prices along with fall weather,” said Patrick DeHaan, senior petroleum analyst for GasBuddy.

“With refineries continuing to get back online and with demand cooling off from the summer months, we have more room to see the national average drop in the week ahead. In fact, this week could see some of the largest drops in gas prices in many months.”

“It still will take time to completely heal from the issues Harvey and Irma left, particularly due to the large scale disruptions of fuel logistics and production, but improvement will continue both with lower retail prices and high refinery output.”

The AAA take on prices:

“Hurricanes Harvey and Irma delivered a 1-2 punch on gas prices in the southeastern U.S.,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Prices surged when Hurricane Harvey caused refinery outages along the Gulf Coast. As refineries recovered, gas prices should have begun to decline after Labor Day, but the arrival of hurricane Irma caused a surge in demand, preventing the impending plunge.

“Gas prices are poised to plummet 30 cents,” Jenkins continued. “It will not happen overnight, as pump prices decline much slower than they rise. Plus, the threat of any new storms making landfall in the United States would compromise the collapse. However, motorists should see gas prices decline through the end of the month, and possibly reach the lowest point of the year in Q4.”

The hurricanes hit the southeast prices the most, according to AAA

Top 5 Monthly Gas Price Increases in the U.S.
1. Georgia (+50 cents)
2. Florida (+46 cents)
3. South Carolina (+45 cents)
4. Tennessee (+42 cents)
5. Alabama (+41 cents)

The cheapest gas in Chattanooga right now is $2.44 at the Sam’s Club on Lee Highway.

There are several $2.47 prices on East Brainerd Road, according to the GasBuddy.com survey

The cheapest price in Cleveland right now is $2.45 at the Pilot at 281 Pleasant Grove Rd SW.

But the cheapest prices of all now are in Soddy Daisy.

$2.39 at the Green Pond (Dallas Hollow Rd.), $2.41 Murphy USA on Dayton Pike & $2.42 at the BP at 11280 Dayton Pike.

GasBuddy.com

Categories: Chattanooga, Cleveland, Consumer News, Hamilton County, Local News

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