Friday March 29th, 2024 8:50AM

Demand, wholesale prices for gasoline may increase state average this week

While Georgia gas prices continued to decline this week, AAA said motorists might see higher prices at the pump later this week after oil and wholesale gasoline prices made gains last week.

On Sunday the state average declined for the 54th consecutive day to a total discount of 42 cents, bringing the average price to $2.35 a gallon. That's down one cent from a week ago, but 11 cents from this time last year.

Across the metro areas there was little change in pump prices, with the biggest weekly increase in Gainesville, up three cents.

Gas price survey site GasBuddy.com countered that the average retail gasoline prices in Georgia rose 0.8 cents per gallon in the past week, averaging $2.32 a gallon Sunday. This compares with the national average that has increased 6.5 cents per gallon in the last week to $2.53 a gallon, according to GasBuddy.com.

AAA reports Savannah takes the highest prices with $2.40 a gallon, with Atlanta at $2.37 and Athens at $2.35. Albany took the lowest price at $2.26.

"Drivers are seeing pump prices increase in some markets, due to higher demand and falling supply levels," said Mark Jenkins, spokesman for AAA. "It would not be a surprise to see gas prices rise 5-10 cents this week, since wholesale prices rose an average of 7 cents last week. However, long term fall gasoline demand is expected to drop in November, which should prevent any significant spike in gas prices before the end of the year."

"It's been a frenzied week at fuel pumps across the country, but without a hurricane driving up prices, many motorists have been dumbfounded about what's taking place with the unseasonable upward trend," said Patrick DeHaan, head of petroleum analysis for GasBuddy. "Such a strong weekly upward move is rare in the fall, but is explained by a confluence of factors, including oil prices hitting a new 2017 high, a major pipeline leak resulting in disruption, autumn refinery maintenance, but perhaps among the more surprising- robust demand for gasoline so late in the season. Such demand has magnified relatively mundane factors into a major gas price event for much of the United States and Canada. But some slowdown is expected in the Great Lakes, the region hardest hit with price spikes in the last week, as repairs Explorer Pipeline have been completed, but some additional bumps in the road ahead can be expected for motorists elsewhere."

Triple A reports gasoline demand hit 9.45 million barrels per day, which is roughly 150,000 more week-on-week and the highest end-October figure since 2006, according to EIA's report for the week ending on October 27.

Gasoline production moved higher to 10.175 million barrels per day, reflecting a production level that's close to where it was prior to the highly active hurricane season. Oil prices climbed nearly $4 during the past two weeks. WTI reached $55.64/b on Friday - the highest daily settlement since July 2015. The price of gasoline on the NYMEX rose 15 cents in the last 11 sessions. Wholesale gasoline prices rose an average of 7 cents in the southeastern U.S. 

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