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Gas prices moving lower again

August 6, 2018--8:19 a.m.


Prices at the pump increased last week as anticipated, yet are pointing lower again this week.

Gas prices in Georgia increased 5 cents during the past week.

Sunday's state average of $2.77 per gallon is 6 cents more than a month ago, and 54 cents more than last year.

Gas prices in July averaged $2.72 per gallon. 

That was the highest monthly average for July since 2014. Summer gas prices are poised to be the most expensive in four years. 

On Monday, the average prices were $2.71 in Floyd County and Chattooga County, $2.77 in Bartow County, $2.76 in Gordon County and $2.78 in Polk County. 

Since June 1, Georgia gas prices averaged $2.74 per gallon - 56 cents more than the average price last summer.

"Prices at the pump have pinballed around this summer, but fortunately have remained within a 20 cent range," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "The limited swings in pump prices and a strong economy has led to one of the biggest driving summers in history. Prices should slip lower this week, due to falling futures prices on the stock market. However, demand historically remains strong through August, which should prevent prices from slipping anywhere near the lows we saw last year."

EIA data released on Wednesday showed signs that the summer driving season remains in full throttle.

Weekly gasoline demand numbers reached near record highs.

That strong demand has cut deeply into supply levels - which declined five consecutive weeks, for a total decline of nearly five percent.

As demand surges, refineries are working hard.

Gasoline production for the week ending July 27th was 2 percent stronger than a year ago, and the fifth-highest weekly rate in history – the highest was the week of Independence Day 2018.

Crude production remains about 16.3 percent stronger than last year. Although oil inventories increased nearly 1-percent, supplies remain 15 percent below last year.