After rising for three consecutive weeks, the state gas price average has moved slightly lower. The Tennessee Gas Price average is now $3.43 which is 34 cents more expensive than one month ago but seven cents less than one year ago.
"Gas prices moved slightly lower across Tennessee last week, which is a nice break from the recent trends we've seen. Gas prices previously rose 37 cents in a three-week period," said Megan Cooper, spokeswoman for The Auto Club Group. "While this is a welcome change, it's uncertain how long this downward trend will last. Last week, gasoline futures rebounded to levels similar to what we were seeing earlier this month. For this week, drivers should continue to expect fluctuations in pump pricing and know that there is a possibility that gas prices may begin to move higher given the recent changes we've seen in the market."
Quick Facts
- 80% of Tennessee gas stations have prices below $3.50
- The lowest 10% of pump prices are $3.22 for regular unleaded
- The highest 10% of pump prices are $3.74 for regular unleaded
- Tennessee is now the 4th least expensive market in the nation
National Gas Prices - The national average for a gallon of gas moved three cents higher after hovering around $3.82 for about ten days, a noteworthy length for price stability.
According to new data from the Energy Information Administration (EIA), gas demand jumped from 8.84 to 9.30 million b/d last week. Meanwhile, total domestic gasoline stocks decreased from 219.1 to 216.4 million bbl. Higher demand, amid tighter supply, has helped to keep pump prices elevated. If gas demand remains high, alongside increasing oil prices, drivers should brace for increases in pump prices.
Today’s national average of $3.85 is 29 cents more than a month ago but 10 cents less than a year ago.
National Oil Market Dynamics - At the close of Wednesday’s formal trading session, WTI increased by $1.48 to settle at $84.40. The price of oil has not been this high since mid-April 2023. Prices have increased amid market optimism that oil demand will be more robust than expected during this half of 2023 and into 2024. According to the Organization of the Petroleum Exporting Countries (OPEC), world oil demand is expected to rise by 2.25 million barrels per day (bpd) in 2024, compared with growth of 2.44 million bpd in 2023. Additionally, the EIA reported that total domestic commercial crude inventories increased from 439.8 to 445.6 million bbl.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Tennessee Regional Prices
- Most expensive metro markets - Jackson ($3.51), Memphis ($3.48), Nashville ($3.47)
- Least expensive metro markets - Knoxville ($3.36), Chattanooga ($3.36), Clarksville ($3.39)
