Average gas prices fall to $1.49 per gallon in Chattanooga

Average retail gasoline prices in Chattanooga fell another 3 cents a gallon in the past week to dip below $1.50 per gallon for the first time since 2008.

The average price of a gallon of regular gas in Chattanooga dropped at the start of this week to $ 1.49, according to GasBuddy’s daily survey of 170 gas outlets in Chattanooga. Gas prices at three Brainerd area gas stations — Sam’s Club on Lee Highway, Shell on Bonny Oaks and Victory Fuels on Brainerd Road — fell Monday to $ 1.39 per gallon for regular gas.

This week’s gas prices in Chattanooga are the lowest since 2008 when fuel prices briefly dipped to $ 1 .44 per gallon, according to GasBuddy. com. But when adjusted for inflation, GasBuddy. com analysts said gas prices in Chattanooga are now at their lowest level since 1965.

Gas prices are likely to stay low given the continued concerns in the oil market about a glut of product.

Oil prices were down as much as 3.8 percent on Monday as investors remained concerned about oil surpluses after a Saudi-Venezuela meeting showed few signs of coordination to boost prices.

Venezuela’s oil minister Eulogio Del Pino, who was on a tour of oil producers to lobby for action to prop up prices, said his meeting with Saudi leaders were “productive.”

“But does ‘ productive’ mean less production? The market thinks not, at least right now,” said Phil Flynn, an analyst at Price Futures Group in Chicago.

U. S. crude oil prices Monday sank 94 cents, or 3.04 percent, to $29.93 a barrel.

“Gasoline prices continue to plunge coast to coast as ref iners continue to churn out winter- spec gasoline that will soon need to be purged,” said Patrick DeHaan, GasBuddy senior petroleum analyst. “While crude oil prices have held above recent lows, gasoline fundamentals continue to be remarkably weak as refiners continue to churn out winter- spec gasoline, incentivized by cheap crude oil. This has put retail gasoline prices under tremendous pressure as gasoline inventories rise to their highest January level since records started in 1990.”

Chattanooga gas prices continue to average 25 cents per gallon below the U. S. as a whole. The price at the pump in Chattanooga this week is 49.8 cents per gallon lower than the same day one year ago and 18.8 cents per gallon lower than a month ago.

Three years ago, the average retail price of gas in Chattanooga was $ 3.33 per gallon, more than double the current average price.

The Associated Press contributed to this report

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

“GASOLINE PRICES CONTINUE TO PLUNGE COAST TO COAST AS REFINERS CONTINUE TO CHURN OUT WINTER-SPEC GASOLINE THAT WILL SOON NEED TO BE PURGED.” – PATRICK DEHAAN, GASBUDDY SENIOR PETROLEUM ANALYST