Energy costs edge higher going into July Fourth

Gas still cheaper than a year ago; electricity rates remain flat

After six weeks of declining gas prices, the cost of filling up at the pump edged higher last week in Chattanooga and could rise in the next couple of weeks due to higher oil prices and the traditionally heavy travel period around the July Fourth holiday next week.

But local gas prices remain nearly 33 cents a gallon below where they were a year ago and 44 cents a gallon below the U.S. average, according to price surveys by GasBuddy. com released Monday.

The price of electricity in Chattanooga also will rise slightly next week. But the Tennessee Valley Authority said that lower fuel costs will keep the average fuel portion of local power bills during July below the average for the month for July over the past three years.

Chattanooga gas prices for motorists have risen 1.3 cents per gallon in the past week, averaging $2.21 per gallon at the start of this week, according to GasBuddy’s daily survey of 170 stations. After falling through May and the first part of June, gas prices in Chattanooga are still 18.5 cents per gallon lower than a month ago and 32.9 cents per gallon lower than a year ago.

Nationwide, gas prices last week fell another 2.5 cents per gallon to $2.65 per gallon, GasBuddy.com said.

According to GasBuddy. com, the cheapest gas in Tennessee on Monday was at the Exxon and BP stations in Ooltewah and the BP station in Soddy-Daisy where regular gas was priced at $2.08 a gallon.

“Oil prices have rebounded notably due to increasing tensions between the U.S. and Iran and attacks in the Strait of Hormuz, a key waterway which sees over 20% of global oil supply traversing through the waterway,” said Patrick DeHaan, head of petroleum analysis for GasBuddy. “Whether the upcoming and likely rebound in gasoline prices sticks for long is unknown, but if tempers continue to flare between the two countries, motorists may fall victim to the rocky relationship in the form of higher gas prices.”

DeHaan said trade tensions with China and a refinery fire in Philadelphia also contributed to the higher prices for gas, which had been falling through most of the spring. Gas prices typically rise during the week of July Fourth, one of the busiest travel periods of the year.

At home, Chattanoogans also will see a slight uptick in the price of electricity needed to cool their homes during July.

TVA said its monthly fuel cost adjustment will boost electric rates slightly in July from the current rates, but power rates will still be up this summer by less than the rate of inflation. TVA raised its base rates for wholesale power by nearly 2% last fall but cheaper natural gas and more abundant hydroelectric generation from TVA’s 29 power-generating dams are helping to hold down fuel costs for the federal utility.

“The overall system average fuel rate for July is approximately 12% lower than the three-year average July fuel cost,” TVA spokesman Scott Brooks said. “This is primarily due to higher expectations for hydro generation in July.”

For the typical Chattanooga homeowner who uses 1,295 kilowatt hours of electricity in a month, the power bill next month will total $142.03, or $1.46 more than the current charge this month for similar power usage.

A year ago, the rate for similar power use totaled 140.30, according to EPB.

Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340