Gas prices are on the rise once again, after declining for nearly two weeks, and could jump by as much as 25 cents a gallon this spring as travel picks up, industry analysts said Monday.
Chattanooga boasts the cheapest average price for gas of any major city in Tennessee, but local prices at the pump still rose by 1.5 cents per gallon in the past week, according to GasBuddy's daily survey of 170 gas outlets in Chattanooga released Monday.
The average price of regular gas in Chattanooga on Sunday was $2.23 per gallon, Local gas prices remained 31 cents per gallon below the U.S. average of $2.54 per gallon.
Local gas prices are still 2.1 cents per gallon lower than a month ago but are up 25.5 cents per gallon from a year ago, GasBuddy said.
Patrick DeHaan, head of petroleum analysis for GasBuddy, said gas prices are likely to continue moving higher in the weeks ahead as demand grows from the winter blues and the transition to summer gasoline kicks into high gear.
"Overall, gas prices this spring will come in some 10 to 25 percent higher than a year ago, removing billions of dollars from other areas of the economy that will instead be funneled to the pump," DeHaan said.
A separate survey by AAA showed Tennessee gas prices declined early last week, then rose a total of 4 cents.
AAA said the most expensive gas price averages in Tennessee are in Nashville at $2.39 a gallon, Jackson at $2.37 a gallon and Knoxville at $2.34.
The least expensive gas price averages in Tennessee are in Chattanooga at $2.26 a gallon in the AAA survey, and in Cleveland where AAA said the average price of fuel is $2.30 a gallon.
"There are a few of factors that gave gas prices a boost, but this time it wasn't crude oil," said Mark Jenkins, spokesman for AAA - The Auto Club Group. "Gasoline supplies took a sharp dip last week, as exports rose and refineries began to switch from summer to winter blend gasoline. In addition, demand in the Southeast - especially in Florida - is strong, as Americans hit the road for spring break."
Oil prices traded lower Monday, with U.S. prices tracking steep losses in the stock market and giving back nearly all of last week's gains.
However, tensions between Saudi Arabia and Iran, as well as concerns over Venezuelan crude production, helped to limit oil's losses.
"Geopolitical issues in the Middle East and Venezuela along with stated commitments to cuts by Russia and Saudi Arabia" are helping put a floor to prices for now, Brian Youngberg, senior energy analyst at Edward Jones, told MarketWatch.
April West Texas Intermediate crude fell by 28 cents a barrel to $62.06 a barrel on the New York Mercantile Exchange.
The Associated Press contributed to this report.
Contact Dave Flessner at dflessner@timesfreepress.com or 423-757-6340.
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