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Pump prices slip as gasoline glut grows

January 28, 2019--8:14 a.m.

AAA NEWS RELEASE

Gas prices in Georgia have leveled-off after rising 7 cents last week. Drivers are now paying an average price of $2.17 per gallon. Sunday's state average is 6 cents more than a month ago, yet 31 cents less than this time last year. 

Gas prices are slipping lower, due to an oversupply of gasoline," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Gasoline supplies are at record highs, according to the latest report from the EIA. That's because refineries had been running hard to meet seasonal demand for both heating oil and exports. In doing so, they were left with more gasoline than there was demand for. State averages could drop another 3-5 cents in the next 7-10 days as a result."

The national average price for gasoline rose 3 cents last week, but prices are now moving lower. Sunday's average price of $2.26 per gallon is 1-cent less than Friday, 2 cents less than this time last week, and 32 cents less than this time last year.

Americans are saving nearly $5 when filling a 15-gallon tank of gas, compared to what they paid a year ago. The national average is 71 cents less than last year's high, and only fractions of a penny more than what drivers paid on January 1.

Oil prices held relatively steady last week. Friday's settlement of $53.69/b for WTI was 11 cents less than the week before. Meanwhile, gasoline futures dropped 6 cents on the NYMEX and wholesale prices followed suit.

Crude prices could face upward pressure this week, as a result of political turmoil in Venezuela. The once oil-rich nation sits on the largest oil reserves in the world, but production has declined during its prolonged economic struggles. Venezuela now faces potential sanctions from the United States on crude exports. Sanctions are being considered as a method to remove Venezuela's President Nicolas Maduro from power. This could also result in the tightening of global crude supplies and higher prices.  

Local averages on Monday

Floyd County - $2.12

Bartow County - $2.19

Gordon County - $2.16

Polk County - $2.15

Chattooga County - $2.02