VALDOSTA —
It’s long been understood that as summertime begins and motorists start traveling for their vacations, gas prices will rise right along with those temperatures.
While political pundits predicted earlier in 2012 that gas prices would hit $4, for the past ten weeks, the national average has continued to decline. The current national average in the U.S. sits right at $3.589, according to the Energy Information Administration’s weekly survey.
While that may seem to be a relief, in 2009 and 2010 gas prices per gallon remained steady at less than $3, until Spring 2011, when they shot drastically up a dollar.
In Valdosta, and most of the Southeast, gas prices are even more comfortable for motorists, with an average price of $3 to $3.25 for a gallon in the region.
“Gas prices are at least a nickel cheaper in Georgia than in Florida,” explained Gary Minchew, a local realtor. “People like Lowndes County and Lake Park so much because they’ve learned to fill up here, especially truck drivers.”
These prices aren’t unique to Lowndes County compared to the rest of the state, it’s just the final Georgia stop before guaranteed higher gas prices in Florida.
Only a portion of that cost is from taxes. The federal tax of 18.4 cents a gallon hasn’t been raised in nearly two decades and over half of the states haven’t raised their gas tax in the 21st century.
Georgia ranks at the very bottom of tax collections from gas when compared to other states, according to the Federal Highway Administration. Alaska, which updated collection rates in 2009 to charge eight cents per gallon is more than Georgia, which collects 7.5 cents per gallon for both unleaded and diesel fuel. Georgia motor fuel tax rates haven’t increased since 1971. Also included are local and state tax rates, which brings in three cents for Lowndes County, along with four cents that the state collects on most retail items.
Part of the reason for Georgia’s cheap gas is the state’s proximity to Texas and Louisiana refineries. Another reason is because in states like California, a gallon of gas can cost over $4, due to additive requirements for cleaner exhaust.
Of course, gas stations have to cover property taxes, overhead and other costs, which provides some explanation behind cost differences between competing community gas stations.
Jay Ghandi with DJ’s Food Mart on Ashley Street said there is typically very little profit on gas prices from a convenience store. He said most gas station owners use low gas prices to bring customers in to purchase other items like food, tobacco or alcohol.
Sometimes gas is sold at a loss, Ghandi said.
“That’s just part of the business,” he said. “Every store has their regular customers and people who just shop for gas.”
Ghandi matches prices with neighboring gas stations, but doesn’t worry about gas stations across town, like Sam’s Club or Murphy’s, which usually have the lowest prices locally.
“If you personally think it’s a good price and you’re in the area, then by all means stop and get gas, but is it really worth for you to drive out there?” proposed Ghandi.
His theory behind the constantly fluctuating gas prices is simple - it follows the stock market. He also doesn’t expect gas to go below $3 a gallon any time this year.
“I think one reason gas is cheap is because money’s tight for everybody; no one has any money,” he said.
Because of the constantly fluctuating prices, mobile apps like Gasbuddy offer constantly updated information on prices from any region.
Ghandi said those websites are usually accurate and can be helpful, but the price difference between local gas stations is usually only a couple pennies.
A source from a local oil distributor who asked to remain anonymous said there are very few people who can predict the cost of gas, but agreed that distributors and retailers of gas are not the people making the big oil bucks.
“It’s supposedly based off crude oil costs, but you could do a thesis on why things are the way they are and still not get to the bottom of the issue,” he said.
Southeast state gas tax comparison:
Ga., 7.5 cents, 1971
Fla., 16.2 cents, 2011
Ala., 18 cents, 1995
Tenn., 20 cents, 1991
S.C., 16 cents, 1987
Miss., 18.4 cents, 2000
La., 20, 1990
Source: Federal Highway Administration
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