Georgia gas prices climb as Middle East tensions drive up oil costs

Drivers across Georgia are paying more at the pump after gas prices rose sharply over the past week, with increases of nearly 20 cents reported both statewide and across metro Atlanta.

The price jump follows renewed tensions in the Middle East after the United States carried out additional military strikes in Iran, pushing global oil prices higher. Nationally, the average price for a gallon of regular gasoline has climbed to about $4.

Thomas Smith, an economist at Emory University, said fuel costs are often one of the first expenses consumers notice, forcing many households to rethink their budgets.

“It’s one of the things that’s definitely going to hit your pocketbook immediately, especially in Atlanta,” Smith said. “People’s behavior is going to start to shift. They might start conserving some of their money and stop spending on other portions of the economy.”

Smith said motorists may also begin adjusting what they consider an affordable price at the pump as costs continue to rise.

“People will recalibrate their expectations based on new norms,” Smith said. “As much as people hate the fact that gas prices are in the $3.70 and $3.90 range, they might now start seeing $3.85 or $3.90 as a low price compared to $4.20 or $4.35.”

According to Smith, higher fuel prices are expected to have an outsized effect on metro Atlanta, where most commuters depend on personal vehicles because of limited public transportation options.