Gas Prices Expected To Rise Further

By Bruce Dortin

ATLANTA, GA – Gas prices in Georgia and across the nation continue to rise – as the Department of Energy reports oil inventories are at their lowest levels since the mid 1970s.

Industry analysts, meanwhile, say the worst may be yet to come.

The average price of self-serve, regular unleaded gasoline in Georgia has risen nearly 16 cents over the past month – to an average of $1.49 a gallon.

The American Automobile Association says that, during the winter months, refineries tend to emphasize the fuel-production needed to generate heat and electricity – and that helps to push prices upwards, at the pump

Tom Kloza is Chief Oil Analyst for the Oil Price Information Service.

He says gas prices will remain fairly stable for about the next 60 days – and then things will start to change.

“I think you'll see some more modest increases over the short term – then I think prices will probably drift down slowly in the dead of the winter, as they typically do,” he says.

“But then, in the spring you're going to get a significant [gas price] rally. And then in the summer, at some point in the driving season like we saw last August, you're going to see the kind of rally which is probably going to change people's behavior, and the kind of cars that they buy.”.

“This will be the year for that,” he says..

Kloza says since this is an election year, he expects rising gas prices to become a political football.

Despite the almost 16-cents per gallon hike in Georgia, gas prices in the state still remain well below the national average.