Cleveland resident Wilhalmena Scott pumps her tank with the lowest price gas at the Orbit Express on Paul Huff Parkway near Interstate 75, at exit 27, in Bradley County.Cheapest cities for gas
1. Cleveland, Tenn., $1.73.5 per gallon2. Chattanooga, $1.75.3 per gallon3. Aiken, S.C., $1.75.7 per gallon4. Henderson, Ky., $1.78.3 per gallon5. Florence, S.C., $1.78.4 per gallonSource: GasBuddy.com
Motorists in Southeast Tennessee are enjoying the cheapest gasoline in America this week, according to a survey released Monday by GasBuddy.com.
The average price of regular gas dropped last week by another 1.8 cents per gallon in Cleveland, Tenn., to under $1.74 a gallon, while the average price of gas fell 2.6 cents per gallon over the past week in Chattanooga to just over $1.75 per gallon. Both cities were nearly 20 percent below the U.S. average price of $2.13 per gallon and boasted the cheapest gas prices in all of America.
"I traveled across a lot of states this summer, and it's great to come home to the cheapest gas I found anywhere," Chattanooga motorist Tommy Woods said Monday while filling up his 8-cylinder Chevrolet Silverado pickup truck for just $1.66 per gallon in Chattanooga. "It really makes a difference."
Gas prices in Chattanooga are, on average, 50.3 cents per gallon below where they were a year ago and 19.7 cents less than a month ago. For the typical household that uses about 1,200 gallons of gas a year, the drop in gas prices in the past year is saving more than $50 a month in fuel expenses.
Oil analysts say the drop in prices may not be over and consumers may get an even bigger break at the pumps this fall.
"As prices continue to fall in the heart of summer, motorists have been able to take advantage of the cheapest summer prices in over a decade," said Will Speer, senior petroleum analyst with GasBuddy. "Demand for gasoline continues to surge as low prices have spurred more road trips and have swayed consumer vehicle purchasing habits. But despite high demand for gasoline, prices have continued to fall amidst an oversupply of gasoline across the country."
Gasoline inventories are up 11.8 percent from this time last year, which "is likely to lead to even further price declines," Speer said.
U.S. oil prices on Monday dipped below $40 a barrel for the first time in three months after a price cut from Saudi Arabia.
Oil has been in a steep descent since the start of July after a spring rally lured U.S. producers into adding more working rigs. The Saudi Arabian Oil Company, known as Saudi Aramco, is cutting oil prices by the biggest amount in years, driving the price of light, sweet crude for September delivery settled down by $1.54 per barrel, or 3.7 percent, in trading Monday on the New York Mercantile Exchange. Oil is down nearly 22 percent from its recent high of $51.23 on June 8.
The drop in oil prices Monday took its toll on other commodities and pushed energy stocks in the S&P 500 down by 3.4 percent in their worst day since late June.
But while oil producers are being hurt, most Tennesseans are benefiting from the cheaper fuel.
"As an oil importing state - and one that has a strong reliance upon both tourism and auto manufacturing - cheaper gas is a big benefit to Tennessee's economy," said Bill Fox, director of the Center for Business and Economic Research at the University of Tennessee.
GasBuddy.com analysts said prices are lower in Southeast Tennessee because of the state's below-average gas taxes and the presence of gas pipelines and plentiful deliveries in the region.
According to the Tax Foundation, the state tax on gasoline in Tennessee is 21.4 cents per gallon, which is nearly 26.7 cents per gallon less than the U.S. average.
Gas prices fell Monday to only $1.66 a gallon at Orbit Express in Cleveland, Tenn., High-Tech on Highway 58 in Chattanooga and Sam's Club on Lee Highway in East Brainerd - the cheapest stations in the region, according to GasBuddy.com.
Even premium gas brands are getting cheaper.
"This is the lowest I've paid in months," Mercedes Benz owner Joe Proctor said as he filled his car with $2.08-per-gallon premium brand gas on Monday in East Brainerd. "It's great for me and great for everybody."
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340.