The New Year began with increased gas prices reaching today’s average of $2.34 per gallon. The national average has moved higher for 34 of the past 35 days, largely due to market reactions to last fall’s OPEC deal. Compared to a week ago, pump prices have risen 5 cents nationwide, 9 cents in Florida, 6 cents in Georgia, and 4 cents in Tennessee.
The Southern region remains home to some of the nation’s least expensive markets for retail gasoline: South Carolina ($2.10), Alabama ($2.13), Tennessee ($2.13), Mississippi ($2.14), Texas ($2.14), Arkansas ($2.15) and Louisiana ($2.15). The region saw some temporary inventory declines last week, due to exports and a power outage at CITGO's Corpus Christi, Texas, refinery that resulted in flaring and excess emissions, according to OPIS. Florida (+9 cents), Arkansas (+8 cents), Texas (+7 cents) and Mississippi (+7 cents) all make the top 10 list for largest weekly increases. Drivers in Florida and Georgia also saw modest gas tax increases of less than a cent at the start of the new year.
Gas prices averaged $2.12 in 2016 – the lowest national annual average since 2004 ($1.84). Also in 2016, the average price for a gallon of regular unleaded was $2.11 in Florida, $2.07 in Georgia, and $1.94 in Tennessee. These state averages were less than 2015 averages by 28 cents nationally, 25 cents in Florida, 22 cents in Georgia, and 23 cents in Tennessee.
"Moving into 2017, retail prices will continue to hinge on the ability of cartel countries to successfully implement production cuts," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Retail averages will begin to increase, leading up to the summer driving season, as seasonal refinery maintenance gets underway this spring."
