ATLANTA — Georgia gas prices surged more than 30 cents in just two days as conflict in the Middle East sparked concerns over global oil production. The sharp increase marks one of the largest price jumps seen in the state in years.
We’re taking drivers through the latest gas prices across north Georgia, LIVE on Channel 2 Action News This Morning starting at 4:30 a.m.
While prices at the pump have spiked, energy experts say the shift is not caused by a change in the current U.S. oil supply. Instead, the increase is attributed to market fear and uncertainty surrounding the Strait of Hormuz, a critical waterway in the oil-rich region.
Data shows the 30-cent increase occurred within a 48-hour window. No nearby refineries have been hit, and nothing regarding the domestic supply side has changed since last week.
[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]
Analysts noted that gas prices in the state moved faster than usual during this period.
Chris Edmonds, an energy analyst at Enercap Partners, told Channel 2’s Michael Doudna that the spike is entirely due to psychological market factors rather than a physical shortage.
“100% of it,” Edmonds said. “There is nothing different from last Friday to today.”
Analysts are monitoring the situation to determine how long the passage will remain inaccessible to tankers.
“We don’t know how long the Strait of Hormuz will be closed, and so everybody’s thinking worst case,” Edmonds said.
Despite the global instability, Edmonds noted that the United States is currently a leading producer of crude oil.
RELATED STORIES:
- Metro Atlanta pastor spent hours in bomb shelter as Iran retaliated against Israel
- Stranded travelers in the Middle East share their accounts of being stuck during the war
This domestic production serves as a buffer against physical supply shortages that have affected the country during past Middle East conflicts.
“That is the fact that the United States is a leading producer of crude oil and so we have protected ourselves,” Edmonds said.
Local drivers expressed frustration with the sudden cost increase, noting that higher prices impact their personal finances. Keefe Brown, a motorist filling up in Atlanta, said the rising prices add to a sense of ongoing instability.
“It feels like a lot’s going on,” Brown said. “It’s like you’re never catching a real break.”
Brown said he hopes for more predictable costs in the future.
“Just hope that we can get some stability in the whole world so that he gets some stability at home, too,” Brown said. “You know, so that gas prices can look like a number that’s actually manageable.”
[SIGN UP: WSB-TV Daily Headlines Newsletter]