Gas prices open the year higher
U.S. motorists are paying more than 35 cents more per gallon than they did last year
By Jim Hendricks
ALBANY — Gas prices are on the rise as the new year gets started.
And experts say motorists shouldn’t expect a return to the sub-$2 per-gallon prices they enjoyed a year ago.
Last January, 100,000 retail gas outlets nationally were selling gas at $1.99 a gallon or less, Patrick DeHaan, a market analyst for GasBuddy, said. This year, there are fewer than 3,000 retailers selling gas that cheap.
“Though we may see rising gas prices take a brief break in early February, we’re unlikely to come anywhere close to last year’s low levels,” DeHaan said. “Overall, the national average price of gas stands 35 cents higher than where it was a year ago on this day, and the gap is likely to continue widening.
“For the upcoming year, it’s not a rosy picture at the pump: GasBuddy’s 2017 Fuel Outlook, being released (Wednesday), will detail when motorists will be seeing the highest prices of the year and how many more billions we’ll spend at the pump in the year ahead.”
Both GasBuddy and AAA daily survey thousands of retail outlets nationwide. On Tuesday, they had the national average at slightly less than $2.35, up more than 6 cents a gallon in a week and about 17.5 cents higher than last month. Year over year, prices are averaging 35.5 cents more per gallon.
“Moving into 2017, retail prices will continue to hinge on the ability of cartel countries to successfully implement production cuts,” Mark Jenkins, spokesman for AAA-The Auto Club Group, said. “Retail averages will begin to increase, leading up to the summer driving season, as seasonal refinery maintenance gets under way this spring.”
The national average has moved higher for 35 of the past 36 days on the Daily Fuel Gauge Report, largely due to market reactions to last fall’s OPEC deal to cut production levels this year, AAA officials said.
Jenkins noted that Southeastern states continued to cost less than many other regions. On Tuesday, Georgia’s average was about $2.25, nearly a dime cheaper than the U.S. average. Still, both surveys had the state average up about 6.5 cents in a week and more than 13 cents in a month. Last year, Georgians were paying less than $1.90 a gallon, more than 36 cents less per gallon.
The AAA Daily Fuel Gauge Report had Albany ranked second-lowest among Georgia’s eight largest metro areas for the average cost of gas in the state on Tuesday. Motorists in the five-county area were paying an average $2.161 on Tuesday, up 5.2 cents in a week and 4.8 cents more than a month ago. Compared to last year’s $1.874 that metro Albany motorists were paying, Albany drivers on Tuesday were spending 28.7 cents more per gallon.
The cheapest average among Georgia metro areas, according to the Fuel Gauge Report, was in Augusta, where motorists were spending an average $2.153. The highest average was in Atlanta, where drivers were paying $2.28 a gallon, a penny more than in second-highest Savannah.