With most of Tennessee's cheapest gas prices being offered at service stations in Chattanooga, local motorists continued to enjoy fuel prices eight cents a gallon below the statewide average and 34 cents a gallon less than the U.S. average, according to a Monday report by the online gas pricing service GasBuddy.com.
But after six weeks of declining prices so far in 2020, the average price of regular gas in Chattanooga rose 4.3 cents a gallon in the past week to an average $2.09 per gallon in Chattanooga, according to GasBuddy.com's survey of 170 area stations.
Gas prices have fallen so far this year due to concerns over the coronavirus and a global economic slowdown, but analysts warn that gas prices could be headed higher now as the busier spring travel season approaches. With fears of the coronavirus easing, oil prices rose last week, pushing up the average price of gas nationwide to $2.43 a gallon.
"Oil prices rebounded last week on word that OPEC members were closely considering cutting global oil production for several months to offset the decline in demand due to the coronavirus," said Patrick DeHaan, head of petroleum analysis for GasBuddy. "While it's possible average gasoline prices will remain within arm's reach of recent lows, unless there's renewed or new concerns with the spread of the coronavirus, we may have seen the deepest discounted prices behind us, with some chance we'll hold close to the lows before the seasonal rally begins in earnest. It wouldn't be a bad time to fill up to hedge the chances of prices rising in the coming days."
According to GasBuddy.com surveys, eight of the 10 cheapest stations to buy regular gas in Tennessee are in Hamilton County Monday, including BP stations in Red Bank in Hixson on Hamill Road and on Hixson Pike where regular gas is priced at $1.91 a gallon.
The lowest price for regular gas in Tennessee Monday is at a Mapco station in Kingston Springs where gas is selling at $1.81 a gallon.