At the Vicky Food Mart, Yolanda Sanford fills her car with a smile. "I'm glad gas prices are lower. It's affordable," Sanford said.CHATTANOOGAChattanooga average regular gas price per gallon:• Current: $2.63• One week ago: $2.68• One month ago: $3.06• One year ago: $3.07Source: AAACITY PRICESLowest average regular gas price per gallon.• 1. Chattanooga, TN: $2.62• 2. Greenville, SC: $2.64• 3. Fort Worth, TX: $2.65• 4. Richmond, VA: $2.65• 5. Dallas, TX: $2.65• 6. Spartanburg, SC: $2.66• 7. Myrtle Beach, SC: $2.67• 8. Memphis, TN: $2.69• 9. Lubbock, TX: $2.70• 10. Jackson, MS $2.70STATE PRICESLowest average regular gas price per gallon.• 1. South Carolina: $2.70• 2. Tennessee: $2.73• 3. Mississippi :$2.73• 4. Texas: $2.76• 5. Virginia: $2.76• 6. Alabama: $2.78• 7. New Jersey: $2.80• 8. Louisiana: $2.81• 9. Missouri: $2.81• 10. Arkansas: 2.81Source: GasBuddy.com
It's a distinction that gives great returns -- to pocketbooks and the bottom line at businesses.
Chattanooga on Monday had the lowest average regular gas price in the nation: $2.63 per gallon. Some gas stations posted prices as low as $2.50 per gallon along Shallowford and Hickory Valley roads. The last time prices were that low was August 2005, according to AAA.
Prices could go even lower as the month progresses, in time for Thanksgiving travel and ahead of the winter gift-giving holidays, oil industry experts said. That's across the country, which has seen a drop in recent months.
"At a time when people can usually use extra cash, it's good to see that gas prices are dropping," said Nancy White, a spokeswoman for AAA, which tracks gas prices daily.
It's not clear why Chattanooga's prices, in particular, are so low.
One thing that probably helps is that the Colonial Pipeline Co., which carries refined petroleum products, has a stop at Lookout Mountain on its way to Knoxville and Nashville, said Tom Kloza, chief oil analyst at the Oil Price Information Service.
Also, the Volunteer State enjoys a low tax rate. The combined federal, state and local gas tax rate in Tennessee is 39.8 cents per gallon. In comparison, the national average is 49.2 cents per gallon.
"When you look at states with the lowest prices, it's often the states that are the lowest-taxed states," said Gregg Laskoski, senior petroleum analyst for GasBuddy.com.
Several factors have pushed gas prices lower nationwide, oil industry experts said. Crude oil prices are down, which lowers wholesale gas prices. Demand is down too. Meanwhile U.S. production is up.
"We're producing more fuel in the U.S. today than we have since 1976," Laskoski said. "We don't have consumer demand that matches production."
Consumption is constricted for a couple of reasons, he said. A drop in the labor-participation work force and an aging society generally translate to fewer people driving. And environmental mandates that have made fuel cleaner mean vehicles have better gas mileage.
"Even if we drive the same number of miles this year as last year, we're consuming less gasoline," Laskoski said.
Also, as a rule, prices tend to drop in the fall, when less-expensive winter blends replace summer gas blends.
"Gas prices have obviously gone up and down over the years," said Mark McAllister, general manager of East Ridge Cab LLC. "I'm trying to remember the last time gas prices were this low."
He couldn't. But the family car service definitely has noticed the recent dips. The team drives 3,500 to 5,000 miles a week. The East Ridge company's October fuel prices were 12 to 14 percent lower than they were for the same month a year ago.
"That's pretty significant for a small business," he said.
Contact staff writer Mitra Malek at mmalek@timesfreepress.com or 423-757-6406.