Gas prices in Chattanooga rose only half as much as the nationwide increase last week and remained 30 cents a gallon below the U.S. average, according to GasBuddy's daily survey of gas outlets.
The average price of a gallon of gas in Chattanooga increased 2.6 cents per gallon in the past week, averaging $2.51 per gallon, GasBuddy said in a report released today. This compares with the national average that has increased 5.5 cents per gallon in the last week to $2.81 per gallon.
Including the change in gas prices in Chattanooga during the past week, prices Sunday were 83.4 cents per gallon lower than the same day one year ago and are 4.1 cents per gallon higher than a month ago. The national average has increased 11.1 cents per gallon during the last month and stands 85.8 cents per gallon lower than this day one year ago.
"Thanks to a large surprise decline in both crude oil and gasoline inventories last week, gasoline prices unexpectedly regained upward momentum," Patrick DeHaan, GasBuddy senior petroleum analyst, said in a statement today. "The government's weekly report on petroleum supplies was a major departure from what we've seen this far in 2015: major jumps in crude inventories, so the market reacted significantly to the year's first big decline in supply."
Absent any surprises this week, DeHaan expects gas prices to stabilize or drop in the next few weeks.
"I see oil currently overvalued and believe the market will eventually come to its senses," he said.