Local gas prices drop in past week but headed higher this summer

Average retail gasoline prices in Chattanooga fell for a second consecutive week last week, dropping another 2.3 cents per gallon to $2.01 per gallon, according to GasBuddy's daily survey of 170 gas outlets in Chattanooga.

The decline in prices locally was in contrast to the 1.7 cents-per-gallon increase nationwide in gas prices, which averaged $2.22 per gallon on Sunday. Most of that increase last week came from a spike late last week in the Great Lakes states.

GasBuddy.com surveys of 170 area service stations show gas prices in Chattanooga are still up by 46 cents a gallon from the low reached in February. But Chattanooga prices at the pump remain 47.8 cents per gallon less than at the same time a year ago.

However, as the traditionally busy summer travel season approaches and crude oil prices show signs of moving higher, motorists should expect to see higher prices at the pump in coming weeks.

"With the Memorial Day holiday two weeks away, it marks the kickoff to the summer driving season," said Will Speer, senior petroleum analyst with GasBuddy.com. "Gasoline demand that has already been strong this year will undoubtedly see a huge seasonal increase in demand. This paired with crude prices that continue to show signs of strength are going to keep further pressure on gas prices this summer."

Gas prices are cheapest in Chattanooga in Hixson and Middle Valley where three service stations are selling regular gas today at $1.92 per gallon.