Chattanooga motorists are paying their highest gas prices in nearly six years after Hurricane Ida disrupted oil deliveries and pushed up fuel prices last week.
The latest survey of service stations by AAA found Tennessee gas price rose an average of 5 cents a gallon last week in the aftermath of Hurricane Ida, pushing up the price of gasoline to the highest level for Labor Day since 2014. The Tennessee gas price average is now $2.91 which is nearly two cents more than one month ago and nearly 94 cents more than one year ago.
Despite the jump in fuel prices, however, Tennessee remains the 9th cheapest state in the country for gasoline and Chattanooga continues to boast below-average gas prices among stations across the Volunteer State. Among Tennessee's metro areas, only Kingsport and Morristown have cheaper gas than the $2.86 per gallon average for regular fuel in Chattanooga.
Hurricane Ida took about 13% of U.S. refinery capacity offline. While there are no firm re-start dates, refineries are expected to be back online this month.
Gasoline stock levels are currently at 227.2 million barrels, which is a healthy level. However, stock levels could tighten until refineries resume normal operations. Typically, a constraint on stocks would mean higher gas prices, but with demand expected to decrease going into the fall, price fluctuation should be minimal
"Historically, gas demand starts to decline in the fall as schools reopen and summer road trips end, which leads to less expensive gas prices," said Megan Cooper, a spokesperson, AAA - The Auto Club Group. "Despite the dip in demand, the national average is expected to remain above $3 a gallon especially as crude oil continues to price on the higher end."
- Compiled by Dave Flessner
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