Metro Albany gas price increase takes a pause

ALBANY — Pending the outcome of several global issues, the oil monster took a break over the last seven days, giving Georgians and drivers in metro Albany a slight break.

According to surveyor GasBuddy.com, the price of a gallon of gas in Georgia dropped 1.3 cents a gallon over the week, coming in Monday at $2.69 a gallon. AAA-The Auto Club Group also had prices falling slightly in the state, a cent a gallon to $2.717 over the past week. GasBuddy had the national average down less than a cent to $2.80 a gallon, while AAA had the average at $2.813, the same as last week.

Metro Albany drivers got a slightly higher break than the state average over the week, seeing a drop in the average of 2.7 cents a gallon, according to AAA. That drop was still 15.5 cents higher than a month ago and 44.2 cents more than 2017 prices at this time.

But analysts warn that the drop in prices could be short-lived. President Trump has until Saturday to decide whether to extend the existing Iranian Nuclear Deal, or restore penalties on one of the world’s biggest oil producers. Restoring sanctions could eliminate 1 million barrels of Iranian oil per day, further constricting supplies in what is already considered to be a tight global market. Until a decision is made, the oil market remains restless, inching toward a $70-per-barrel threshold that hasn’t been breached since Nov. 26, 2104.

“Preliminary projections had gasoline averaging around $2.75 this summer,” Mark Jenkins, a AAA spokesman, said. “However, all bets are off right now, pending the president’s decision on the Iranian Nuclear Deal. Gas prices were relatively stagnant last week, but we could see a slight boost, based on oil price gains last week and the potential for additional hikes in the coming days.”

The most expensive gas price averages in Georgia Monday were in Brunswick ($2.75), Atlanta ($2.75) and Savannah ($2.74), while the least expensive averages were in Augusta-Aiken ($2.62), Columbus ($2.63) and Warner Robins ($2.63).

According to GasBuddy’s historical data, gasoline prices on May 7 in Georgia have ranged widely over the last five years: $2.20/g in 2017; $2.19/g in 2016; $2.54/g in 2015; $3.66/g in 2014, and $3.41/g in 2013.

“The rise in gas prices has slowed substantially in the last week in some places, with 15 states seeing gas prices move lower versus last week,” Patrick DeHaan, head of petroleum analysis for GasBuddy, said. “While we may not be out of the woods yet, especially with President Trump mulling over the Iran nuclear deal, it’s possible we’re very close. Much will depend on his decision on the subject.

“Killing the deal may inflict more pain on motorists as it may lead to sanctions placed on Iran and their oil production, which would likely push oil prices higher. With summer gasoline now phased in and reaching motorists’ gas tanks across the country, it is no longer an active issue pushing prices up. Oil’s moves and possible moves will likely be the key catalyst behind changes at the pump in the weeks ahead as summer driving season soon gets underway. Motorists should expect the national average to drift around in the upper $2 per gallon range for much of the summer.”