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Chattanooga gas prices fell another 8.3 cents per gallon in the past week to some of the lowest inflation-adjusted prices for fuel in history.

The average price of regular gas in Chattanooga dropped to $1.60 per gallon, according to GasBuddy's daily survey of 170 stations. Gas prices in Chattanooga are 45.4 cents per gallon lower than a month ago and are nearly 85 cents per gallon lower than a year ago.

Gas is  priced the cheapest today in Chattanooga at a BP station on Norcross Road, where regular gas is selling for $1.18 a gallon.

But nearly all stations locally are selling gas below the national average price of $1.91 a gallon, GasBuddy analysts said.

Chattanooga gas pricies are the lowest since February 2016 when the average price of fuel locally briefly dropped to only $1.44 a gallon in Chattanooga. Adusted for inflation, today's average price is within a few pennies of that record low.

Patrick DeHaan, head of petroleum analysis for GasBuddy, said the drop in gas prices is probably not over.

"Average prices will continue to play catch up for the next few weeks or longer," he said. "Do keep an eye on this week's potential meeting between major oil producers Russia and Saudi Arabia, however. on hopes of a production cut, oil rallied nearly $7 per barrel last week."

DeHaan said if there is an agreement to cut oil production, that could establish at least a floor on oil prices and soon stem the drop in prices at the pump.

"But motorists need not worry," DeHaan said. "If there is a cut, it is highly unlikely to cause a surge in gas prices, as retail prices have not come close to matching the declines in wholesale prices to this point."

(Read more: See where gas is cheapest in Hamilton County)

 

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