Chattanooga average gas prices drop below $3 a gallon and are headed lower

Staff photo by Troy Stolt / Ben Michaels pumps gas into his car at the Speedway gas station on the corner of S. Holtzclaw Ave. and E. 3rd Street on Monday, Oct. 11, 2021 Chattanooga, Tenn.

Chattanooga gas prices dropped for a third consecutive week, falling 4.3 cents a gallon over the past week to an average price below $3 a gallon for the first time in two months, according to GasBuddy's daily survey of 170 stations in Chattanooga.

GasBuddy reported Monday that the average price of regular gasoline in Chattanooga is $2.98 per gallon this week, or 36 cents a gallon below the national average. Gas prices in Chattanooga are 14.6 cents per gallon lower than a month ago but remain $1.13 a gallon higher than a year ago.

"The downturn in average gas prices continued to gain momentum last week as oil prices remained at a hefty discount," said Patrick De Haan, head of petroleum analysis for GasBuddy. "This is largely due to continued anxiety over the omicron variant and because some countries have begun issuing lockdowns, keeping motorists in some countries from consuming as much fuel."

DeHaan said he expects fuel prices to continue to drop this month.

"It's not impossible given the conditions that price wars, where stations lower their price significantly, could emerge as stations now have considerable room to lower prices," he said.

- Compiled by Dave Flessner