Gas prices at historic highs locally following new sanctions, state moving to suspend gas sales tax to relieve some pain

Diane Britt was at the pump this afternoon at Murphy Fuel, just at the intersection of Highway 27, and the price she saw for a gallon of regular gas shocked her.

“I can’t believe I I just paid $4.26 a gallon for gas,” she said after she sat and watched the final tally grow as her tank slowly filled.

She, like other consumers today, were shocked at the drastic cost increase at gas stations across the country as a new round of sanctions were announced by President Joe Biden on Tuesday in response to Russia’s War in Ukraine. No more energy imports from Russia means that consumers globally watched oil prices spike in response, and thus unleaded goes up as well.

Locally, those prices are all on the rise. At Kroger this afternoon, the cost of gas was up to $4.29 a gallon. It was $4.29 at Walmart as well – without a discount at either places – and ranging up and down in cost at stations across Polk County. Earlier this morning in a drive around town, the prices stood at $4.03 a gallon at one station, if drivers are paying credit. It was up this afternoon.

The price at one station this morning was $4.03 a gallon with card in Cedartown. It since rose.

According to AAA, gas prices a week ago were averaging $3.65 a gallon for regular across the country, and have since gone up to $4.25 a gallon as of today.

Locally, the price is still better than California’s staggering $5.57 a gallon average, or Illinois and New York prices that are above $4.40 a gallon.

Expect it to continue to go up before it goes back down, is the real likelihood.

Crude oil prices on the open market jumped to $126 a barrel as trading closed out this afternoon on markets, and overnight will likely continue to rise.

Gas prices are thus impacted by those rising crude costs, since consumers ultimately eat the cost of increases in crude since refineries increase their costs to wholesalers, and then onward to gas stations before consumers see the final price at the pump.

As gas prices rise, it will then start impacting prices in every other sector of the economy as prices increase to make and ship goods for companies, small businesses, and those who rely on transportation for their work like those in construction and repair trades.

There might be some relief on the horizon for Georgia drivers, as Governor Brian Kemp and the legislature are working together to temporarily remove the state gas tax from the cost to consumers at the pump. However that relief would only last through May 31, and the General Assembly has to vote on a bill to put on the Governor’s desk.

The sticker shock at the pump will potentially keep consumers and businesses looking at increased prices across the board as costs increase for transporting goods and providing services.

Kemp made the same move in May 2021 during the Colonial Pipeline shutdown due to a hacking attack on the company that distributes gasoline on a pipe from Louisiana through the Southeast and Mid-Atlantic region.

Read more about those efforts here on Capitol Beat.

For now, consumers are going to have to adjust to the cost, and find additional ways to cut back to afford the commute. The cost of gas, at least for Britt, didn’t mean that she would be changing her travel plans anytime soon.

“I mostly just drive to work, so I guess I’ll just have to pay what they’re asking,” she said.