ROSWELL, Ga. — Georgia is currently seeing the highest gas prices we’ve seen in nearly four years.
An energy analyst told Channel 2’s Bryan Mims that, absent an all-out end to the war in Iran, we will likely keep seeing volatility in the oil market.
And even though the United States is a leading oil producer -- and we get a small fraction of our oil from the Middle East -- the pain still comes to a pump near you.
Gas prices are flirting with $4 a gallon across metro Atlanta. Travis Espinoza drives an SUV and told Mims that he’s making adjustments.
“Usually, if I’m going to get gas, I’m going to put in $30 or $40. But I’m not going to fill it up to $90,” Espinoza said.
Here’s what’s largely driving up prices now.
The U.S. is blockading Iranian ports, and the Strait of Hormuz, where 1/5 of the world’s oil transits, is effectively shut down.
But the U.S. only gets 8% of its oil from Middle Eastern countries, and we export more oil than we import.
Atlanta energy analyst Chris Edmonds said that doesn’t matter because oil is not priced domestically.
Traders are spooked by disruptions in the Strait.
“Oil is a global commodity. Energy is a global commodity. It’s priced based on risk. And the risk is, the more oil that comes out of the market globally, the more expensive that commodity will become, just based on simple supply and demand,” Edmonds said.
With no end in sight to the conflict in Iran, it’s anyone’s guess how high fuel prices could go.
Some analysts say metro Atlanta could see $5 a gallon.
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Channel 2 Consumer Advisor Clark Howard said expensive gas stations in the area will likely have $5-a-gallon gas in the next couple of weeks, with over $4 at bargain stations.
“At some point, price will erode demand. And is that $4.50? Is that $5? It’s probably somewhere in there, and that will cause the economy to slow,” Edmonds said.
Edmonds said it’s highly unlikely that the average price would climb to five bucks in the U.S., let alone in Georgia.
“I think there would have to be another batch of bad news or news that suggests that the conflict will increase, that it will become more intense.”
We have seen much higher gas prices in Georgia. The cost for a gallon of regular was $4.49 in the summer of 2022.
But AAA spokesperson Montrae Waiters said we do have some relief in Georgia: the gas tax is suspended through May 19.
“That’s why we’ve not seen gas prices hit that $4 mark at this point,” Waiters said.
For Steven Lee of Roswell, he’s resigned himself to high gas prices.
“I mean, what can you do? I guess you can drive an electric car,” Lee said.
Edmunds said if the war were suddenly to end, oil prices would tumble. But it could take months before gas prices get back to below $3, where we were before the war.