Experts predict holiday price bump at pump

ALBANY — With forecasters predicting higher prices at the pump heading into the Independence Day holiday and the busiest driving season of the year, prices remained pretty much stable nationally during the past week while actually falling in Georgia and metro Albany.

The southwest Georgia region had some of the cheapest pump averages in the state Monday, according to surveyors AAA-The Auto Club Group and GasBuddy, companies that provide up-to-the-minute costs in the state and nation. Albany’s $2.567 average dropped 2.1 cents per gallon from last week, beating the state average drop of a penny to $2.690.

The national average, expected to climb on oil price increases, remained at $2.856 per gallon, while Georgia’s average prices edged down from $2.703 to $2.690.

The Warner Robins area had the lowest average prices among Georgia’s 15 metro regions ($2.546), followed by Augusta-Aiken ($2.564) and Albany. The highest averages in the state were in Atlanta ($2.74), Hinesville-Fort Stewart ($2.71) and Athens ($2.70).

“Going into the July 4 holiday, I can’t remember the last time oil markets were so active,” Patrick DeHaan, head of petroleum analysis for GasBuddy, said. “Oil has surged over 10 percent just in time for summer’s busiest travel holiday, costing motorists over $1 billion more than last year.

“All the ingredients exist for the national average to inch closer to $3 per gallon, just in time for the second half of the summer. Undoubtedly, the second half of the summer will be pricier than the first, thanks to OPEC’s production increase falling short of expectations, sanctions to be placed back on Iran by November and falling U.S. oil inventories. And to rub some salt in the wound, hurricane season is still upon us, adding more guess work to where gas prices might spend the second half of the summer. Make no mistake, it won’t be pretty, not nearly as ‘pretty’ as the first half of the summer. Be ready for volatility and likely higher prices at the pump in July and August.”

Experts pretty much universally say prices face upward pressure. AAA forecasts nearly 47 million Americans will travel for the holiday. The 39.7 million who will drive will find gas prices 50-60 cents more than last year.

“Gas prices will inch higher before July 4, on renewed concerns of global oil supply shortages,” AAA spokesman Mark Jenkins said. “Oil prices are back to multiyear highs. A 5-10-cent increase at the pump would not be out of the question this week, but prices will not rocket high enough to ruin travel plans.”

Motorists traveling for the 4th will find the most expensive Independence Day gas prices in four years. However, prices will remain well below the $3.57 average from July 4, 2014.

The rising price of crude oil is responsible for restoring upward pressure on prices at the pump, experts say. After trading around $65 per barrel two weeks ago, oil rocketed to $74.15 on Friday. That is the highest daily settlement since November 2014.