Georgia gas prices fall as state tax break continues

Georgia drivers are seeing lower gas prices as the state continues a temporary suspension of its motor fuel tax, but experts say several factors can still push prices higher or lower.

The average price for regular gas in Georgia was $3.85 a gallon Thursday, down from $3.96 one week ago, an 11-cent drop.

Gov. Brian Kemp extended the state's motor fuel tax suspension Tuesday. The break removes 33.3 cents per gallon in state tax on gasoline and now runs through Nov. 5. The current suspension took effect Sept. 29.

For drivers, the tax break can translate into several dollars in savings each time they fill up. A 10-gallon purchase represents about $3.33 in avoided state tax. The savings are about $5 on 15 gallons and $6.66 on 20 gallons.

Still, some metro Atlanta drivers say gas remains a strain on their budgets.

Armonda Davis drives a V8 and said he has recently been stopping for gas about every two days. He said the cost is even affecting his weekend plans.

"Three weeks ago, it was definitely a little cheaper. I actually took a road trip. It wasn't that bad, but now I'm not even thinking about taking that road trip. So I'm staying home this weekend," Davis said.

Another driver, Audrey, said a fill-up that normally costs her about $25 to $30 recently cost $44.

"That's pretty high right now," she said.

The latest numbers also show why drivers may not see the full 33.3-cent tax break reflected directly on gas station signs.

Gas prices averaged about $4.11 per gallon when the suspension took effect Sept. 29. They are now about $3.85, a decline of roughly 26 cents.

Patrick De Haan, head of petroleum analysis at GasBuddy, said the state tax is only one factor determining what drivers ultimately pay.

"It's not just as simple as waiting for the gas tax suspension to visibly drop the price 30 cents," De Haan said. "Oil prices are moving in real time."

De Haan described prices at the pump as a "tug of war" among several factors, including oil prices and geopolitical tensions.

He said most of the benefit from Georgia's tax suspension appears to be reaching consumers. Without the suspension, De Haan estimated Georgia drivers would likely be paying about $4.05 to $4.10 per gallon.

The tax break does not freeze gas prices. Changes in oil markets and global events can continue to move prices in either direction while the suspension remains in effect.