After record highs, Georgia gas prices decline. It might not last
Earlier this month, the national average price of gas hit a record high of $4.33 per gallon. Now that average has declined to $4.23. Georgia drivers are seeing savings of about 21 cents at the pump, with prices averaging $4.02 per gallon.
The decline comes after Gov. Brian Kemp suspended the state gas tax last week, which accounts for 29 cents per gallon. So why hasn’t gas gone down the full amount?
Gas Buddy Petroleum Analyst Patrick DeHaan said gas prices rely on multiple factors.
“Oil prices are up significantly; today, the wholesale price of gas is up 15 cents gallon," he said. “So, if politicians said, 'Effective tomorrow, we’re going to drop that tax,' well, that tax of 20 cents a gallon could simply be gobbled up by the fact that wholesale prices are up 15 cents a gallon today.”
Crude oil prices initially surged in reaction to Russia attacking Ukraine, but they have since declined. Prices are likely to continue to fluctuate as the conflict continues and supplies and demand shift.
Another factor: AAA reports that gas prices falling right now goes against seasonal trends.
“Usually this time of year, with warmer weather and longer days, we’d see an uptick in gasoline demand as more people hit the road,” AAA spokesperson Andrew Gross said.
Georgia’s gas prices have seen the fourth largest shift in the past week following behind Florida, Delaware and Maryland, which leads the nation with a 46-cent drop in average gas prices.