Gas prices going down, not up heading into spring

CHATTANOOGA (WDEF) – Gas prices are defying logic again.

Prices generally move up as spring approaches, but the bottom is falling out of oil prices again.

So we saw Chattanooga prices fall another 1.9 cents last week, according to the GasBuddy.com survey.

The new average here is $2.00 a gallon.

Nationally, prices fell 1.3 cents a gallon.

“A sudden plunge in the price of oil is likely to weigh on gas prices, at least temporarily,” said Patrick DeHaan, senior petroleum analyst for GasBuddy.com.

“With little warning or expectation, crude oil last week broke out of the rut it had well established, with crude prices falling out of a 3-month range of $51-$54 per barrel to $49. Fundamentals of oil have weakened, and with last week’s large 8.2 million barrel rise in crude oil inventories, the market has turned decidedly bearish for now. Naturally, when oil prices take a beating such as they did last week, one might expect gasoline prices to move in lockstep, but due the complex relationship of oil and gasoline prices and the middleman- U.S. refineries- motorists may not see as large a decline at the pump as they may hope for- but certainly stay tuned.”

“I remain optimistic that the annual spring rally at the pump could be less severe than expected, but remain cautious as it remains difficult to know where the new path will lead oil prices in the week ahead,” DeHaan said.

The cheapest gallon in Chattanooga this week is at the Sam’s Club on Lee Highway at $1.89. Several other locations nearby have $1.90 gas.

But Dunlap continues to beat that price.

The Murphy USA (Rankin) CITGO (TN-28) Spirit (28/127) & Hi-Tech (Main St.) all have prices at $1.86.

The best price in northwest Georgia is $1.89 at the Costco off Cloud Springs. The rest are in the $2.05 range.

Categories: Chattanooga, Consumer News, Local News, Sequatchie County

Leave a Reply

Your email address will not be published. Required fields are marked *