Rise in diesel costs have regional economic effect, professor says
SAVANNAH, Ga. (WSAV) — Gas prices in Georgia exceeded the record set back in 2008 on Wednesday, rising $0.10 overnight and $0.63 from last week, according to AAA.
As of Wednesday evening, the average for regular gas in Georgia is $4.17 per gallon and diesel is $4.88, according to AAA. In South Carolina, the average for regular is $4.02 per gallon and $4.85 for diesel.
Gas prices soar, nearing record high amid Ukraine-Russia conflict
The record-high prices come after President Biden announced the U.S. will ban imports of Russian oil. While the high cost at the pump certainly affects drivers, it also impacts the local economy.
Richard McGrath, an economics professor at Georgia Southern University, explained that companies aren’t tied to the market price of crude oil. The more uncertainty there is, the more gas retailers tend to increase prices out of caution.
“You see this volatility in the…
