Chattanooga gas prices jumped by more than 17 cents a gallon, on average, in the past week to a level more than 50% higher than a year ago as the spring and summer travel season approaches.
The average price of a gallon of regular gas in Chattanooga rose to $3.97 a gallon over the past week, and the average local price of diesel fuel jumped 22.6 cents a gallon to nearly $5.52 per gallon - the highest such price ever, according to GasBuddy's survey of 170 stations in Chattanooga.
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Although Chattanooga remains one of the few cities with average gas prices below $4 a gallon, prices in Chattanooga are up $1.35 per gallon compared with a year ago. GasBuddy said local prices at the pump in Chattanooga are still an average of 34 cents a gallon below the U.S. average price of $4.31 per gallon for regular gas.
Chattanooga prices also remain below the peak of $4.07 per gallon of regular fuel hit in early March.
"Gasoline and diesel prices alike saw strong upward momentum last week as oil prices continued to climb after the EU signaled its desire to sanction Russian oil," Patrick De Haan, head of petroleum analysis at GasBuddy, said in a report Monday. "In addition, U.S. petroleum inventories saw yet another weekly decline as we near the start of summer driving season,"
De Haan said truckers and others using diesel fuel are feeling the biggest effect of the rise in fuel prices.
"Not only are diesel prices at a record high, but they are also at their largest differential to gasoline on record, surpassing the 98-cent difference in 2008 and currently standing at a $1.20 per gallon premium," DeHaan said. "While motorists filling with gasoline have seen a slight rise in prices, diesel's surge will be a double whammy as diesel prices will soon be passed along to retail channels, further pushing up the cost of goods."
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Most shipper contracts now include a fuel cost adjustment to help truckers recover the rising price of diesel fuel. That will add to the inflationary pressure to raise prices on more goods, DeHaan said.
A separate survey by AAA on Monday found the national average for regular gasoline rose to $4.328 a gallon, only a fraction of a penny shy of the all-time high of $4.331 set March 11.
The higher fuel prices may be reshaping how many Americans drive, or at least how much they will drive, this summer.
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Among 1,392 U.S. drivers asked in a recent Yahoo/Maru Public Opinion survey, 66% of vehicle owners said they have made or will make significant changes to their driving patterns if the national average cost of gasoline sits between $4.12-4.35 per gallon during the summer. The other 34% said they will not likely change their driving habits until the price is approximately $5 per gallon. Some areas of the nation, such as California and Nevada, already exceed that average.
The survey also found:
- 62% of respondents say they will cut back vehicle use to just necessities like groceries, shopping and doctor visits.
- 41% say they will not fill up the tank because of the high costs of fuel.
- 31% said they may take public transit or other means to work rather than driving their vehicle.
- 29% say they have canceled plans for summer holiday travel by car.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340. Follow him on Twitter @dflessner1.
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| Chattanooga Gas Prices provided by GasBuddy.com |