Georgia drivers look for relief amid record gas prices

At a Sam’s Club in Tucker, Ga., the line for gas is so long it’s blocking the entrance to the parking lot.

People are waiting in line to get what might be the cheapest gas in the metro area at $3.03 per gallon. That’s according to Gas Buddy, an app that allows drivers to compare prices at the pump and find the most affordable local gas.

Apps like Gas Buddy have become increasingly popular as prices have soared across the country. Gas Buddy Lead Petroleum Analyst Patrick De Haan said the website and the app have seen 100 times more traffic than even during the Colonial Pipeline shutdown in May 2021.

Jonathan Stiers lives about 15 miles away, but said saving money is worth the drive and the wait.

“I’m going to be a little late for work, which is totally okay," he said. "But the price of gas here at Sam’s is so much better than $3.99 at the gas station right around the corner.” 

According to AAA, the average price of regular gas in Georgia is $4.17 per gallon and still rising.

Discount gas stations like Costco and Sam’s Club can keep their prices low by selling gas in high volume. They’re able to offset what they may lose on gas profits by luring customers into stores to buy big-ticket items like electronics or furniture. Competing gas stations such as a nearby Shell or Exxon are usually independently owned and can’t afford to match prices because profits from gasoline sales are essential to the business.

Georgia’s regular gas prices currently include a state gas tax of 29.1 cents per gallon and a federal tax of 18.4 cents per gallon. Diesel vehicles pay slightly different amounts with 24.4 cents per gallon going to federal taxes and 32.6 cents per gallon going to the state.

Caption

Four factors influence the price drivers see at the pumps. The surge in crude oil prices have lead to price increases.

Credit: U.S. Energy Information Administration

U.S Energy Information Administration shared a graphic explaining that the price of gas comes down to four factors: crude oil, refining, distribution and taxes. The price of crude oil has risen significantly in response to the ongoing Russia-Ukraine crisis.

Public pressure has been mounting against politicians to take action. Now, Gov. Brian Kemp is working on suspending the state gas taxes while U.S. Sen. Raphael Warnock advocates for a federal gas tax suspension.

Kemp said in a press release today he’s confident the state budget can handle the temporary loss of revenue.

“Because of our strong, fiscally conservative approach to budgeting, Lt. Gov. Duncan, Speaker Ralston and I can confidently propose a state motor fuel tax suspension to curb sky-high gas prices while also returning money back to hardworking Georgians through a tax refund and an income tax cut,” he said.

The measure will start once the governor signs HB 304 and stay active through May 31, 2022.