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Georgia gas prices hit all-time record high; here's what you need to know

By FOX 5 Atlanta Digital Team
Updated  March 9, 2022 7:22pm EST
Gas Prices
FOX 5 Atlanta

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One Georgia business owner became emotional when he said he had to let go of longtime customers. Rideshare drivers are getting methodical with their routes.

ATLANTA - Georgia gas prices have reached record highs as costs skyrocket across the country.

Wednesday, the average price for a gallon of gas in Georgia is $4.168 for regular unleaded, AAA reports. That tops the previous record in September 2008 of $4.164 after Hurricane Ike.

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The move comes after pleas by Ukrainian President Volodmyr Zelenskyy to U.S. and Western officials to cut off the imports, which had been a glaring omission the massive sanctions put in place on Russia over the invasion. President Joe Biden said the U.S. is working on a long-term strategy to liberate Europe from dependence on Russian oil.

The price is 11 cents higher than Tuesday, more than 63 cents compared to last week, more than 86 cents a gallon than the same time in January, and over $1.55 per gallon compared to the same time in 2021.

Atlanta also broke its record set in 2008, with gas prices jumping more than 14 cents to around $4.21 for a gallon of regular unleaded.

With all this pain at the pump, Georgia still remains slightly lower than the national average of around $4.25 a gallon Wednesday.

House subcommittee approves measure to suspend Georgia gas tax

The bill still requires full House and Senate approval. It would go into effect when the governor signs it and last through May 31.

Possible gas tax suspensions

On Tuesday, Republican Georgia Gov. Brian Kemp said he wants to suspend collections of state motor fuel taxes amid rising pump prices.

Democratic U.S. Sen. Raphael Warnock of Georgia has already been advocating for the federal government to suspend collection of its gas tax, responding to discontent over rising fuel prices, a marker of inflation.

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Georgia’s gasoline price includes a federal tax of 18.4 cents per gallon and a state tax of 29.1 cents per gallon. A number of cities and counties also charge taxes. Federal taxes on diesel fuel are 24.4 cents per gallon, while Georgia’s tax on diesel is 32.6 cents per gallon.

Kemp did not say how long he would want to suspend taxes for or how much it would cost, pending a bill likely to be introduced Wednesday in the General Assembly. Kemp did say the plan would not imperil his proposal to give $1.6 billion in state income tax refunds out of a state budget surplus.

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Pain at the pump has changed how commuters get to work. Some are turning to public transit. Others, a bike.

What's causing the big price increase in Georgia?

According to a statement issued by AAA officials, crude oil prices are soaring because of the ongoing Russia-Ukraine war, which is leading to higher gas prices at the pump.

Russia plays an outsized role in global energy markets as the third-largest oil producer. Its exports of 5 million barrels of crude per day amount to about 12% of the global oil trade. Some 60% goes to Europe and another 20% to China.

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While the U.S. and 30 other countries have announced that they will release millions of barrels of crude oil from their strategic reserves, AAA officials say its impact on pricing is limited because the amount of oil being released is a pretty small amount when compared to the amount of crude oil exported from Russia.

"The increase in gas demand and a reduction in total supply contribute to rising pump prices. But, increasing oil prices play a leading role in pushing gas prices higher," AAA said. "Consumers can expect the current trend at the pump to continue as long as crude prices climb."

Gas saving tips

There are some things that drivers can do to keep gas prices down.

How high could gas prices get?

GasBuddy, which tracks prices down to the gas station level, has said that the U.S. was likely to break price records when inflation is not taken into account for such records. 

"Forget the $4 per gallon mark, the nation will soon set new all-time record highs, and we could push closer to a national average of $4.50," said GasBuddy analyst Patrick De Haan. "We’ve never been in this situation before, with this level of uncertainty … Americans will be feeling the pain of the rise in prices for quite some time."

AAA spokesperson Garrett Townsend agreed with the prediction of higher gas prices in the upcoming months. 

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The conflict between Russia and Ukraine takes its toll on gas prices. Georgia drivers are paying, on average, more than $4 in gas.

"In Georgia right about March and April, the refineries shut down, and they start producing a summer blend that generally adds 15 cents more per gallon," said Townsend.

AAA suggests making sure your vehicle is well-maintained and running smoothly to prevent wasting fuel. 

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The Associated Press contributed to this report.