After a surge in travel and the war in Ukraine combined to push up oil and gas prices a year ago, Chattanooga homeowners and motorists are getting a reprieve this fall in what they pay for both electricity and gasoline.
Despite a 4.5% increase in base electricity rates imposed last month by the Tennessee Valley Authority, cheaper fuel costs will more than offset the base rate increase by TVA and reduce the delivered price of electricity to Chattanooga homeowners below year-ago levels in November, according to EPB.
At the same time, gas prices for motorists are also declining this fall. The average price of a gallon of regular gas in Chattanooga fell this week t0 $2.91 per gallon — the cheapest price at the pump since January and nearly 30 cents a gallon below the prices of a year ago, according to a survey of 170 local stations by the online fuel pricing service GasBuddy.com. Gas prices in Chattanooga have dropped an average of 60 cents a gallon since their August peak and could decline even more this fall, according to industry analysts.
"Demand for gasoline continues to weaken as we get closer to seeing the first snow flurries fly across some areas of the country, and against the backdrop of winter, there isn't as much desire to get out," Patrick De Haan, head of petroleum analysis at GasBuddy, said in a report Monday. "Coupled with cheaper winter gasoline and refinery issues that have faded to the rearview thanks to the drop in demand, gasoline prices have been weakening even as oil prices have climbed ... For now, that trend will likely mean further declines in the weeks ahead before prices bottom out between Thanksgiving and Christmas."
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Laura Aldrich, a Jasper, Tennessee, resident who regularly drives 150 miles a week, said she's glad to see the drop in fuel prices. Aldrich filled her SUV with gas on Monday at the Circle K station on Ashland Terrace in Red Bank, where regular gas for cash and Easy Pay customers was $2.57 a gallon — one of the lowest prices for any gas station in Tennessee, according to GasBuddy.com.
"I shop around for the best price, and right now this is the place," Aldrich said while filling up her Chevy Equinox.
GasBuddy said the average price of regular gas in Chattanooga dropped 8.9 cents a gallon last week and nearly 35 cents a gallon in the past month. Chattanooga gas prices at the start of this week averaged nearly 59 cents a gallon below the national average gas price of nearly $3.50 per gallon, according to GasBuddy.com.
A separate statewide survey of gas prices by AAA also released Monday said Tennessee gas prices fell by an average of 5 cents a gallon in the past week to $3.09, or 23 cents a gallon less than one year ago.
"We've now seen prices at the pump decline for the fifth consecutive week," AAA spokesperson Megan Cooper said in a gas price report released Monday. "Prices are still falling on the momentum created by the seasonal downturn in fuel demand, coupled with stronger gasoline supplies and the switch to cheaper winter-blend gasoline. If oil prices remain flat through this week, it's likely that momentum could continue and bring further price drops at the pump for drivers again this week."
The AAA survey found Tennessee had the sixth lowest average price of gasoline among all U.S. states.
Electric prices drop
Cheaper oil, gas and natural gas prices are also helping to lower the price of electricity. TVA spokesman Scott Brooks said in a statement Monday that TVA's overall fuel costs for next month are 4% lower than the three-year average for November.
"This is due in part to milder than expected weather in recent months," Brooks said in a statement Monday.
For the typical Chattanooga household using 1,091 kilowatt-hours of electricity, EPB said next month's electricity bill will total $133.56, or 66 cents below what it cost for the same amount of electricity a year earlier.
With colder weather ahead, monthly electricity bills for most households that rely upon electric heat will still go up in coming months. To help limit such costs, EPB suggests homeowners take advantage of TVA's new EnergyRight home energy rebate program to help pay for home energy improvements. Eligible investments include new HVAC units, windows, water heaters, insulation and ductwork.
More information is online at EPB.com/energyrebates. EPB also provides Energy Pros to recommend home improvements at epb.com/energypros or by calling 423-648-1372.
Contact Dave Flessner at dflessner@timesfreepress.com or 423-757-6340.
Staff photo / Ben Michaels pumps gas at the Speedway station on the corner of South Holtzclaw Avenue and East Third Street on Oct. 11, 2021, in Chattanooga.