Chattanooga gas prices continue to drop

Gas prices tile

The average price of a gallon of gasoline in Chattanooga fell another 2.6 cents per gallon last week, dropping to $2.40 a gallon on Sunday, the online news service GasBuddy.com said today.

According to GasBuddy's daily survey of 170 gas outlets in Chattanooga, gas prices in Chattanooga are 88.5 cents per gallon less than a year ago and are 36 cents per gallon cheaper than the national average.

With a potential of a nuclear agreement with Iran lifting sanctions imposed against the oil-rich nation, oil prices declined again Monday and are expected to push gas prices down even more this week.

"Gas prices will resume their decline for the time being, even as gasoline demand remains historically very strong," Patrick DeHaan, GasBuddy senior petroleum analyst, said today.

In a note today on the oil markets, Matt Smith, director of commodity research at ClipperData, said the expected Iranian nuclear deal is driving crude oil price futures down.

"With an announcement expected later today, the prospect of an influx of new barrels to the market is sending prices charging lower to start the week," he said.