Despite higher gas prices in much of the country and higher crude oil futures today, gas prices fell, on average, at Chattanooga gas stations last week by 2.8 cents per gallon to $2.47 per gallon, according to GasBuddy’s daily survey of 170 stations.
Gas prices in Chattanooga have risen 11 cents per gallon in the past month, but prices are still 37 cents per gallon less than the U.S. average price for regular gas, now at $2.84 per gallon, GasBuddy.com said in a report today.
Chattanooga gas prices are 1.4 cents per gallon higher than a year ago.
According to GasBuddy price reports, the cheapest station in Chattanooga is priced at $2.21 per gallon today while the most expensive is $2.79 per gallon.
Gas prices may soon be headed higher after brent crude futures today surged more than 3 percent today to over $74 per barrel in Asia, while U.S. crude futures rose around 2.67 percent to $65.71 per barrel.
The oil spike followed reports that U.S. Secretary of State Mike Pompeo will announce that from May 2, the State Department will no longer grant sanctions waivers to any country that is currently importing Iranian crude or condensate.
“The sanctions (are) obviously one of the major movers, I think, which is influencing prices,” said Daryl Liew, head of portfolio management at financial services company Reyl Singapore.
India could suffer the most from Washington’s move.
“I think India is probably one of the key potential countries that might suffer from a higher oil price, in terms of their current account deficit, for example. And that’s going to be basically putting pressures on inflationary pressures as well,” Liew told CNBC’s “Street Signs” today.
Patrick DeHaan, head of petroleum analysis for GasBuddy, said tightening sanctions, unless offset by OPEC producers, will likely cause oil prices to continue to surge.
“This will cost Americans billions if the Administration enforces the end to waivers,” DeHaan said. “Such a loss of oil in the current environment of OPEC cuts and rising demand would only serve to cause gas prices to continue advancing, something that has repeatedly drawn the scorn of President Trump, but with such a policy change and waivers perhaps ending, it could directly cause another round of gas price increases just as the national average reaches its highest level in months and points to a more painful summer at the pump.”
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