Gas prices climb in Georgia as global tensions persist
A gas pump is seen situated into a vehicle at a Shell gas station on August 03, 2023 in Austin, Texas. Gas stations around the country have boosted prices by an average of 26 cents a gallon over the past month as irregular temperatures have made fuel
ATLANTA - Average gasoline prices in Atlanta climbed 4.8 cents per gallon over the past week, reaching $3.52 per gallon, according to GasBuddy's latest survey of more than 2,100 stations across the metro area. Despite the increase, prices remain 20.6 cents lower than they were a month ago, although drivers are still paying 62.5 cents more than they did at this time last year.
What we know:
Across Georgia, the average price rose to $3.54 per gallon, up 5.5 cents from last week. Nearby cities also saw notable increases, with prices jumping 16.5 cents in Chattanooga to $3.44 per gallon and 12.9 cents in Macon to $3.57 per gallon.
The national average price of gasoline increased by 10.3 cents over the last week to $3.82 per gallon, marking the first weekly increase since May and ending an eight-week streak of declines. Diesel prices also climbed sharply, rising 9.6 cents to a national average of $4.85 per gallon.
Why prices aren't falling
What they're saying:
GasBuddy says rising oil prices are largely responsible for the latest increase at the pump. Patrick De Haan, the company's head of petroleum analysis, said oil prices surged after renewed conflict involving the United States and Iran, along with fresh attacks on Russian refineries that have tightened global fuel supplies.
The instability has disrupted oil shipments through the Strait of Hormuz, a critical route for global energy exports. Industry analysts say uncertainty surrounding the waterway continues to put pressure on fuel markets, even as some oil shipments have resumed.
Global demand slows, but supply concerns remain
Big picture view:
At the same time, global oil demand is expected to decline this year for the first time since the height of the COVID-19 pandemic in 2020, according to the International Energy Agency. Higher prices and supply disruptions have slowed demand in many parts of the world, particularly in Asia, according to Fortune.
Even so, analysts say gas prices have not dropped significantly because supply concerns remain. Ongoing geopolitical tensions, refinery disruptions and uncertainty in key oil-producing regions continue to offset weaker demand, keeping fuel prices elevated across Georgia and the nation.
Cheapest and most expensive prices
Local perspective:
Drivers in metro Atlanta saw prices ranging from $3.25 per gallon at the area's cheapest station to $4.79 at the most expensive, while statewide prices ranged from $3.09 to $4.79 per gallon. Check prices at local stations.