Georgia drivers are breathing a sigh of relief at the gas station as the price of regular gas drops to an average of $2.926 per gallon, or $0.239 less than last year.
According to the AAA car club, which monitors gas price fluctuations and gives daily updates, the national average price for a gallon of regular gas on Thursday was $3.33, down a penny from $3.34 last year.
Gas costs, which were already putting a strain on Americans’ finances, were driven even higher by Russia’s war in Ukraine, so the Biden administration has been drawing down the nation’s Strategic Petroleum Reserve since the spring as part of its campaign to cut gas prices.
A gallon of gas now costs approximately $2.50, down from about $5 in June. Lower demand resulted in cheaper oil, and that’s reflected at the pump. Patch provides free, real-time updates on what’s occurring across Georgia.
The cost of all other fuels has remained steadily higher
The price of E85, a fuel combination of 85% ethanol and 15% gasoline used in flexible fuel vehicles, has dropped even further in the past year, to an average of $2.73 per gallon from $3.11 in the same period last year.
Compared to last year, the cost of all other fuels has remained steadily higher. Diesel gasoline, in particular, has skyrocketed in price, now averaging $5 per gallon, up from $3.11 per gallon last year. The cost of fuel in Georgia is now $4.802 per gallon, an increase of $1.311 over the same time the previous year.
All grades of gasoline are more expensive than they were a year ago, although the increase is most pronounced for premiums. The national average for regular gas was about $3.79 a gallon on Thursday, up from about $3.71 a year ago; the national average for premium gas was about $4.10 per gallon, up from about $4.08 a year ago.
The average cost of regular gas in Georgia is $3.336 per gallon
We continue to see gas prices far higher than those of recent years. Vice President Joe Biden has blasted oil giants like Exxon, Mobil, and Chevron for their record quarterly earnings.
According to research by the International Energy Agency, the net revenue of global oil and gas producers is forecast to increase by 100% this year, reaching a “record” of $4 trillion. Prior to the midterm elections in October, Vice President Joe Biden urged lawmakers to tax oil firms more heavily if they don’t use some of their earnings to cut gas prices.
He said that firms should cease making money off of war and instead focus on their domestic obligations and the welfare of the American people. While the lowering prices provide Americans some breathing room in their fight against inflation, they don’t give the Federal Reserve much room to delay interest rate hikes to manage inflation.
Beth Ann Bovino, the U.S. senior economist at financial analysis firm S&P Global, told The New York Times, “It’s excellent for households, and it’s good for affordability.” “But at the same time, the lessening of price pressure at the gas pump leaves more money to spend elsewhere, which would give a near-term boost to inflation, which the Fed would have to combat,” the article reads.