Gas prices across Tennessee moved higher over last week, however, pump prices began declining over the weekend, allowing drivers to start the week only two cents more expensive than last week. The Tennessee Gas Price average is now $2.89 which is 14 cents less expensive than one month ago and 10 cents less than one year ago.
"Last week we saw a slight increase in crude oil pricing, but thankfully oil pricing cooled off by the weekend. We saw a similar trend in our pump prices here in Tennessee - from Monday to Thursday last week the state average jumped five cents to $2.92, but thankfully prices began dropping over the weekend and fell to $2.89, only two cents more expensive than last Monday," said Megan Cooper, spokeswoman, AAA - The Auto Club Group. "If the oil market continues to see fluctuation in crude oil pricing there's a possibility that we could also see additional fluctuation in our local pump prices. The good news is that 90% of gas stations in Tennessee have prices below $3 per gallon and Tennessee has the 10th least expensive state gas price average in the country."
Quick Facts
- 90% of Tennessee gas stations have prices below $3.00
- The lowest 10% of pump prices are $2.62 for regular unleaded
- The highest 10% of pump prices are $3.32 for regular unleaded
- Tennessee is the 10th least expensive market in the nation
National Gas Prices - Despite less than stellar domestic demand, the national average for a gallon of gas fell only a penny since last week. The primary culprit is the cost of oil, which is creeping closer to $80 a barrel. Since oil is the main ingredient in gasoline, higher oil costs tend to put upward pressure on pump prices.
According to new data from the Energy Information Administration (EIA), gas demand ​decreased from 8.48 to 8.21 million b/d last week. Meanwhile, total domestic gasoline stocks increased by 1.8 million bbl to 218.2 million bbl. Lower gas demand has contributed to limiting pump price increases amid rising oil prices.
Today’s national average of $3.24 is 18 cents less than a month ago and 17 cents less than a year ago.
National Oil Market Dynamics - At the close of Wednesday’s formal trading session, WTI increased by $1.45 to settle at $77.86. Oil prices increased due to market concerns that OPEC+ will maintain its production reduction agreement through 2024. A tight oil supply could elevate prices if demand moves higher than expected. Additionally, the EIA reported that total domestic commercial crude inventories increased by 1.6 million bbl to 449.7 million bbl last week.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Tennessee Regional Prices
- Most expensive metro markets - Nashville ($2.96), Jackson ($2.94), Memphis ($2.92)
- Least expensive metro markets - Chattanooga ($2.76), Clarksville ($2.82), Kingsport ($2.83)
