The Gas Price plunge continues another week dropping prices into $1.40 territory

CHATTANOOGA (WDEF) –  Gas Prices are dropping so quickly these days that this week’s lowest gallon could become the average price next week.

GasBuddy.com reports that prices have fallen another three cents in the Chattanooga area in the last week, for an average of $1.49 per gallon.

That didn’t match the 5.2 cent drop nationally.

But we still have cheaper prices than our neighbors in Knoxville, Nashville, Huntsville, Birmingham and Atlanta.

This week, we have several $1.39 stations.

In Chattanooga, you can find the price at Sam’s on Lee Highway, the Shell on Bonny Oaks & Victory Fuels on Brainerd Road.

Costco also has $1.39 gas at Cloud Springs Road.

And Athens, Tennessee has a $1.39 price war going on at the Murphy, Speedway and Kangaroo at the Decatur Pike exit.

“Gasoline prices continue to plunge coast to coast as refiners continue to churn out winter-spec gasoline that will soon need to be purged,” said Patrick DeHaan, GasBuddy senior petroleum analyst. “While crude oil prices have held above recent lows, gasoline fundamentals continue to be remarkably weak as refiners continue to churn out winter-spec gasoline, incentivized by cheap crude oil. This has put retail gasoline prices under tremendous pressure as gasoline inventories rise to their highest January level since records started in 1990. Refiners will continue selling any winter spec gasoline at bargain basement prices to rid themselves of it before specifications change heading into summer. In the days ahead, expect this seasonal “clearance sale” of gasoline to continue, leading to lower prices in most areas. But,” DeHaan said, “Don’t get too relaxed- the shift in specifications will lead to an eventual lift in prices once winter gasoline is gone.”

For LIVE fuel price averages, visit http://media.gasbuddy.com.