Gas prices to drain wallets again

Chattanooga motorists are paying the highest prices at the pump in a year and a half and could pay nearly $3 a gallon again by the start of the summer driving season, according to energy surveys and experts.

A survey of Chattanooga area service stations by AAA on Monday found the average price of regular gas rose 18.5 cents per gallon in the past month to nearly $2.70 a gallon.

Patrick DeHaan, a senior petroleum analyst for GasBuddy.Com., said prices are rising with springtime temperatures and the improving economy. Chattanooga prices were up 1.1 cents in the past week, Mr. DeHaan said.

"As we approach the summer driving season when Americans consume the most gasoline, we typically see prices rise," he said. "Prices have risen nearly 20 cents a gallon in most areas in the past three weeks, so we could very easily see gas at $3 a gallon in most cities by Memorial Day, although it's usually a little cheaper than that in Tennessee and Georgia."

The AAA fuel gauge survey found Chattanooga area gas prices average about a dime a gallon below the national average.

Local gas prices on Monday were more than 90 cents a gallon higher than the same time a year ago, although they remained $1.28 a gallon below the all-time peak in September 2008, according to AAA.

Steve Hall, the owner of a lawn care and landscaping business in Ringgold, Ga., said he now spends nearly $200 a week on gas for his business.

"Every time gas prices go up, that comes out my profits," he said.

Dr. Ziad Keilany, a University of Tennessee at Chattanooga economist and former OPEC consultant, said the surging Chinese economy is driving up oil demand even more than the United States.

"Gas prices can go up and down from day to day, but the trend is definitely upward," Dr. Keilany said. "The economy is growing and that tends to push up demand and prices, but that demand isn't just coming from the United States any longer. The market is now shifting to China."

A new study shows that motorists in Georgia and Tennessee are especially vulnerable to higher gas prices because they spent more of their income on fueling their cars and trucks.

According to the Natural Resources Defense Council, the average Tennessean spent $1,569 on gas in 2009 while the typical Georgia motorist spent $1,595 for gas last year.

"Our ongoing oil addiction is draining our wallets and our economy, and rising gas prices will only add to this burden," said Deron Lovaas, a transportation expert who authored the study.

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Prices at the pump

* $2.69.6 -- Average price per gallon of regular gasoline in Tennessee

* $2.69.9 -- Average price per gallon of regular gasoline in Chattanooga

* $2.72.2 -- Average price per gallon of regular gasoline in Alabama

* $2.72.8 -- Average price per gallon of regular gasoline in Georgia

* $2.80 -- Average price per gallon of regular gasoline nationwide

Source: AAA Fuel Gauge survey on Monday

What gas cost the average driver in 2009

* Georgia: $1,595, or 4.64 percent of income

* Tennessee: $1,568.96, 4.49 percent on income

* Alabama: $1,257.58, 3.76 percent of income

Source: Natural Resources Defense Council

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