Memorial Day Gas Prices Hit High But Now Are Easing Off
Memorial Day weekend gas prices spiked to a 4-year high but they have dropped some this week. Reportedly, the decrease is in response to Iran actually discussing the reopening of the Strait of Hormuz. Gas analysts believe significant increases will be avoided if the peace talks between the U.S. and Iran continue to show promise. However, any suddent escalation could spark another rapid jump upwards.
Prices Drop For Now, But Are Still High
This morning the national average for a gallon of regular unleaded is $4.42. That is 14¢ cheaper than last Thursday. In Alabama, gas is 12¢ a gallon cheaper than a weekago, averaging $4.05 a gallon this morning.
Major metropolitan area are ringing up gas prices between $3.98 to $4.07 a gallon. Montgomery County is the most expensive at $4.08 a gallon while Mobile County is the least expensive at $3.99. Motorists headed to the beaches of Baldwin County will pay $3.98.
In West Alabama, only one county is pumping gas below $4.00 a gallon. That is Fayette County at $3.98. The highest in the region remains Perry County at $4.33 a gallon.
Perry County consistently records the highest pump prices in Alabama, often sitting well above statewide and national averages. This extreme pricing is largly the result of its rural location, low-traffic location in the Black Belt. Gas stations there face very little competition. Because there are fewer options for consumers and a lower volume of fuel sold, local station owners apply higher markups to maintain their profit margins.
In Tuscaloosa County, the average is $4.04 a gallon in Tuscaloosa County. That is 11¢ cheaper than last week.
Diesel Prices Still Concerning
The $5.64 a gallon and upwards being paid for diesel fuel is helping drive inflation. Because heavy-duty trucks, trains, farm equipment, and cargo ships run on diesel, higher fuel costs inflate production, transportation and supply chain expenses. These costs are ultimately passed along to consumers.
A Year Ago Wasn't So Bad Afterall
Oh for the days of a year ago when we were complaining about gas prices soaring upwards 44% to $2.71 a gallon for unleaded gas.
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