Southeast Tennessee no longer boasts the cheapest gas in the Southeast as it did at the start of 2020, but the average price of regular gas still fell in the past week as concerns about a war with Iran eased and oil markets retreated.
Chattanooga gas prices dropped an average 5.2 cents per gallon in the past week, reversing most of the 7-cents per gallon jump in the previous week as the new year began, according to GasBuddy's daily survey of 170 stations.
The average price of a gallon of regular fuel in Chattanooga fell Monday to $2.24 a gallon, or 55 cents a gallon below the U.S. average of $2.79 a gallon. That was still a dime a gallon higher than a week ago when some stations began 2020 with gas selling below $2 a gallon.
Across Tennessee, five stations in Cleveland, Tennessee, on Monday were among the cheapest stations with regular gas selling at $2.09 a gallon. But gas was selling even cheaper in Louisianna at $2.03 a gallon and in Arkansas at $2.06 a gallon Monday, according to GasBuddy.com
"With Iran and the United States de-escalating rising tensions last week, oil prices plummeted back under $60 per barrel, a welcome sign for motorists who had believed gas prices were about to shoot up," said Patrick DeHaan, head of petroleum analysis for GasBuddy. "For now, the reduced tensions may lead gas prices to again begin falling in most states over the next few weeks before seasonal factors then again push prices back up."
Dehaan said gas prices may continue to fall in the next month, barring any additional conflicts in the Mideast.
"Bottom line: enjoy the falling prices while they last and cross your fingers that tensions continue to cool between the U.S. and Iran," Dehaan said.