Gasoline prices in the Gainesville area are among the lowest in the state this week, according to the latest fuel price report from AAA-The Auto Club Group.
Gainesville motorists are paying an average of $1.93 per gallon. Monday's state average of $1.99 a gallon is a penny more than a week ago, a penny less than last month, and 43-cents less than this time last year.
It now costs motorists $29.85 to fill a 15-gallon tank of gasoline, which is $11.25 less than what motorists paid in April of 2019, when pump prices hit their peak of $2.74 per gallon.
"Gasoline stocks hit their lowest level since the pandemic began and demand dipped on the week, down to 8.6 million barrels a day,” said Montrae Waiters with AAA. “These decreases typically lead to cheaper pump prices, but this summer we’ve seen atypical gas price trends.”
Hurricane Watch
Waiters said this week market experts are watching Tropical Storms Marco and Laura in the Gulf of Mexico. Marco, whose force is decreasing and is expected to be a tropical depression late on Tuesday, is less of a concern. However, Laura is forecasted to move into the southeastern Gulf of Mexico and become a hurricane by early Tuesday.
According to the U.S. Department of Interior's Bureau of Safety and Environmental Enforcement, approximately 58 percent, or 1.065 million barrels a day, of crude production in the Gulf of Mexico has been shuttered ahead of the storms and 114 (18%) platforms evacuated.
While gasoline stocks remain at a healthy level, if platforms and rigs are offline for an extended amount of time, supply could tighten and gas prices could be impacted. AAA will continue to monitor activity and provide related gas price updates.
Oil Market Dynamics
At the end of Friday’s formal trading session, WTI decreased by 48 cents to settle at $42.34 per barrel. Crude prices were supported by growth in the strength of the U.S. dollar. Additionally, domestic crude prices decreased despite the Energy Information Administration's (EIA) weekly report revealing that total domestic inventories decreased by 1.6 million barrels last week, lowering total stocks to 512.5 million barrels. For this week, crude prices could increase, depending on the impact of Tropical Storms Laura and Marcos. If crude production continues to decrease and stays offline for an extended period, crude prices could increase as supply tightens.
Regional Prices
Atlanta ($1.97)
- Most expensive Georgia metro markets – Savannah ($2.07), Brunswick ($2.05) and Valdosta ($2.02).
- Least expensive Georgia metro markets – Catoosa-Dade-Walker ($1.90), Rome ($1.92) and Gainesville ($1.93).
