Gasoline prices heading into the Labor Day weekend in Chattanooga are up 41.4 cents a gallon from a year ago, but prices at the pump are still down from their summertime highs and likely to decline some this fall, according to Gasbuddy.com.
In a report today, the online gas price reporting service said the average price of a gallon of regular gas in Chattanooga Sunday dropped by 3.3 cents a gallon from a year ago to $2.48 a gallon, according to GasBuddy's daily survey of 170 stations in Chattanooga.
Chattanooga prices, on average, are 35 cents a gallon below the U.S. average and are also the lowest among major MidSouth markets surveyed by GasBuddy.com.
"With Labor Day dead ahead, we may see a small rise in the national average this week, depending on oil's move, but largely, this seems like the last week we'll see elevated prices as demand is set to drop with the conclusion of Labor Day weekend," said Patrick DeHaan, head of petroleum analysis for GasBuddy. "The Atlantic remains quiet, so there's little chance of a major disruption for the time being, with the overall consensus that we'll soon see prices falling once again across most of the country."
Gas prices for this time of summer are the highest in four years, although still 76 cents a gallon below what they were at in 2013 and are down 4.2 cents a gallon from the July highs reached in Chattanooga.
But last year, gas prices spiked around Labor Day due to Hurricane Harvey so fuel prices may end up comparable with Labor Day 2017 in Chattanooga, according to AAA Auto Club.
"Pump prices are 40-50 cents higher than a year ago, but that spread will be erased by Labor Day," said Mark Jenkins, spokesman, AAA - The Auto Club Group. " In 2017, gas prices spiked before Labor Day, after Hurricane Harvey struck the Gulf Coast. This year, motorists should benefit from a relatively quiet hurricane season along the east coast. Although pump prices may fluctuate with surging holiday demand, AAA does not forecast a significant hike, unless there is an unexpected disruption in supply."
According to AAA, gas prices in Tennessee declined 2 cents last week. The state average declined for the 23rd consecutive day on Sunday, for a total discount of 6 cents per gallon during that time. Sunday's state average of $2.59 across Tennessee is 44 cents more than this time last year, according to AAA surveys.