According to this week's fuel price report from AAA, Georgia gas prices are declining after oil prices suffered big losses during the week. The average price for gasoline in Georgia dropped for the 15th consecutive days for a total discount of 3 cents since May 27.
The average price for a gallon of regular unleaded in Georgia was $2.20 on Sunday, according to AAA, whose data is collected from credit card swipes and direct feeds from 120,000 gas stations nationwide, in cooperation with OPIS and Wright Express. The Georgia average is 1-cent less than a week ago and 7 cents less than this time last year.
- The most expensive gas price averages in Georgia are in Atlanta ($2.23), Savannah ($2.21), Columbus ($2.16)
- The least expensive gas price averages in Georgia are in Augusta-Aiken ($2.08), Macon ($2.12), and Albany ($2.14)
Nationally, the average price for a gallon of gasoline dropped the ninth consecutive day Sunday, falling a total of four cents since June 2. On Friday, the average price dropped below year-ago levels for the first time in 204 days. Sunday's national average of $2.34 was 4 cents less than both last week and this time last year.
Falling oil prices are pushing gasoline prices lower too. "Unexpected growth in oil and gasoline supplies sent prices into a downward spiral," said Mark Jenkins, spokesman for AAA. "Oil prices plunged to lows that should translate to a total discount of 5-10 cents at the pump, but motorists shouldn’t expect that discount to hit overnight. It usually takes a week or two before gas prices fully adjust to major shifts on the crude oil market."
Last month, OPEC extended production cuts in hopes of balancing the oil market. Yet it appears the market glut is getting worse, according to the latest supply data from the government (EIA), thanks in large part to increased production in the United States. Crude inventories unexpectedly rose for the first time in nine weeks, increasing 3.3 million barrels per day to a total of 513.2 million barrels. Meanwhile, gasoline stocks grew for the first time in five weeks, by nearly 3 million barrels. Both stock levels are well above last year's levels.
All this growth, combined with weaker demand figures, pushed oil prices to their lowest point in five weeks. Thursday's daily settlement of $45.64 was the lowest since May 4, 2017. The weekly average of $46.56 was the lowest since November 2016. Oil prices have fallen $4 since Labor Day weekend.