Gas prices in Chattanooga rise to record high as Memorial Day approaches

At least 39 million Americans are expected to travel more than 50 miles away from home this week as the summer travel season kicks off with the highest gasoline prices on record, according to AAA.

"Road trippers can expect to pay the most expensive gas prices on record for Memorial Day this weekend, " AAA Auto Club spokeswoman Megan Cooper said in a report released Monday. "Unfortunately, due to a combination of tightening global oil supplies alongside strengthening demand, the unprecedented pain at the pump is likely to continue throughout the summer driving season."

AAA estimates more than 698,000 Tennesseans will hit the road for Memorial Day road trips this weekend, up 8.3% from a year ago.

Motorists in Chattanooga will pay 53% more than what they did a year ago for fuel, with gasoline rising in the past week to a record high of $4.22 a gallon, surveys by the online pricing website GasBuddy.com show. Fuel prices have now surpassed the previous peak reached in early March and are expected to remain elevated during the traditionally busy summer travel season ahead.

"With more Americans planning to hit the road for Memorial Day this year compared to last, prices will be over $1.50 per gallon higher than last year," Patrick De Haan, head of petroleum analysis at GasBuddy, said in a report Monday. "Gasoline prices surged over the last week to new record highs but have finally started to slow their rise, with diesel also finally cooling off."

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GasBuddy said gas prices in Chattanooga are 40.2 cents per gallon higher than a month ago and stand $1.47 a gallon higher than a year ago. Despite the jump in local prices, Chattanooga gas prices still average 35 cents a gallon below the U.S. average of $4.57 a gallon.

Chattanooga also boasts the lowest gas price anywhere in Tennessee at the Sam's Club station on Lee Highway, where gas was selling Monday for $3.77 a gallon. Cars were lined up 15-vehicles deep Monday to take advantage of the discounted fuel, which sold for 45 cents a gallon below the average for gas in the Chattanooga area.

Gasoline has either remained flat or risen every day since April 24 and has set a new record daily since May 10, De Haan said.

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According to new data from the Energy Information Administration, total domestic gasoline stocks decreased by 4.8 million barrels of oil to 220.2 million barrels of oil last week. Meanwhile, gasoline demand increased from 8.7 million barrels per day to 9 million barrels per day.

Those refueling with diesel will pay even more, with diesel fuel prices jumping to nearly $5.52 a gallon, GasBuddy said.

Although gasoline prices affect more individual drivers, diesel fuel rates affect the price of shipping nearly every consumer product.

"Energy, in a way, is the tail wagging the dog here," Bob McNally, president at Rapidan Energy Group, told CNBC last week. "(Diesel) is the lifeblood of the economy, transportation, power in some cases so it really is embedded in economic activity, and it's filtered through so many goods and services."

CNN reported Monday that the White House is considering an emergency declaration that would enable President Joe Biden to release diesel from a rarely used stockpile in a bid to address a major supply crunch. The deliberations about tapping the Northeast Home Heating Oil Reserve underscore the level of concern inside the White House about record-high prices for diesel.

Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340. Follow him on Twitter @dflessner1.

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Chattanooga Gas Prices provided by GasBuddy.com

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