Chattanooga gas prices likely to fall below $2- good news for everyone
It was on Monday that Chattanooga recorded the lowest average gas price in the nation at $2.63 per gallon. In fact, some gas stations along Hickory Valley and Shallowford roads posted prices as low as $2.50 per gallon. According to AAA, the last time gas prices were so low was on August 2005.
Oil experts predict that rates can reduce more as the month progresses, just in time for Thanksgiving travel and just before the winter gift-giving holidays. This is good news for people, especially since the drop in prices is taking place just when people need and can use the extra cash. .
Possible reasons for drop in fuel prices
While it’s not clear why exactly the prices in Chattanooga are so low, one probable reason is the fact that the Colonial Pipeline Co., which carries refined petroleum products, stops at Lookout Mountain enroute to Knoxville and Nashville.
Another possible reason is the low tax rate of Volunteer State. In total, the federal, state and local gas tax rate here is 39.8 cents per gallon while the national average is 49.2 cents per gallon.
Several other factors have lead to reduced gas prices nationwide like the drop in crude oil prices, which also lowers wholesale gas prices. Moreover, while US production is up, its demand is low. US is today producing more fuel than it used to since 1976, and the consumer demand is lower than the production rates.
Reasons for the drop in consumption and demand
This drop in consumption is because fewer people drive vehicles today. This drop in drivers is mainly attributed to a reduction in the labor-participation work force and an aging society. Moreover, environmental mandates have lead to the production of cleaner fuel and this fuel gives vehicles better gas mileage.
In fact, while the same number of miles is driven this year is similar to last year’s; the nation is consuming less gasoline. As a rule, fuel prices tend to drop in fall when the winter slowly blends to replace summer gas blends.
While gas prices have been fluctuating and going up and down over the years, it’s been a long time since the gas prices in Chattanooga has dropped so low. These reduced fuel charges are not only beneficial to consumers in general, but also to cab services and small businesses.
It is expected that while the gas prices could get lower all month, it is expected to finally bottom out somewhere in January.
With gas prices dropping, more people will drive to more places. This year, watch out for accidents and drive safely. If you are in an accident and find yourself in need of oral reconstructive surgery as a result of facial injury, contact the best dentist in Florissant Missouri!