Peach Tree Times

Gas prices have risen by 18 percent nationally since the beginning of the year and by more than 30 percent for Georgians, significantly higher than the 4.6 percent average increase in the overall Consumer Price Index over the same time period. Georgia pump prices are nearly ten times higher in 2023 than the overall annual inflation rate for August.

This morning, the Bureau of Labor Statistics released the Consumer Price Index for August of this year. The report found that the overall annual inflation rate for August was 3.7%. According to the report, the index for gasoline was the largest contributor to the overall increase. 

According to data from Gas Buddy, the price of regular gasoline in Georgia rose from $2.744 on Jan. 1, 2023, to $3.582 on Sept. 1, representing an increase of 30.5 percent. That rate of increase is significantly higher than those in the neighboring states of Alabama, South Carolina, and Tennessee. 

Per Gas Buddy, in Atlanta, the price per gallon of regular gasoline rose from $2.738 on Jan. 1, 2023, to $3.640 on Sept. 1, a 32.9 percent increase.

Nationally, gas prices have increased substantially since the beginning of this year. Per the Federal Reserve Bank of St. Louis' FRED database, on a monthly basis, the average price per gallon of all gas formulations rose from $3.223 the week of Jan. 2, 2023, to $3.807 the week of Sept. 4, 2023, representing an increase of 18.1 percent.

According to data published by the US Inflation Calculator, the average rate of annual inflation over the period of January 2023 to August 2023 is 4.52%.

An analysis by The Conference Board U.S. found that consumer confidence fell from July to August 2023. Dana Peterson, Chief Economist at the Conference Board, stated that responses to their survey “showed that consumers were once again preoccupied with rising prices in general, and for groceries and gasoline in particular,” and noted that “[t]he pullback in consumer confidence was evident across all age groups—and most notable among consumers with household incomes of $100,000 or more, as well as those earning less than $50,000.'"

According to the Bureau of Labor Statistics' most recent annual consumer expenditures survey, the average consumer unit spent $3,120 on gasoline, other fuels, and motor oil in 2022. That marks a 45.3 percent increase over 2021.

The Biden Administration, which in March 2022 announced a plan to release oil from the Strategic Petroleum Reserve in order to offset rising gas prices and reduce pain at the pump, drained the nation's reserves to 350 barrels.