Drivers across Tennessee are seeing continued relief at the pump as gas prices fall once again. According to AAA – The Auto Club Group, the state average dropped four cents over the past week, bringing the price of regular unleaded to $2.56 per gallon. That’s four cents cheaper than last month and 11 cents less than this time last year.
“Tennessee drivers continue to see prices drop at the pump,” said Megan Cooper, spokeswoman for AAA. “Barring any major changes in the overall market, this trend is likely to continue through the end of the year thanks to weaker demand and lower crude oil prices.”
Nationally, gas prices hit a milestone last week when the average dipped below $3 per gallon for the first time in four years. As of Tuesday, the national average stood at $2.95. The last time drivers saw prices at or below $3 was in May 2021. Analysts point to sluggish demand, cheaper winter blend gasoline, and crude oil prices hovering near $60 a barrel as key factors behind the decline.
Data from the Energy Information Administration shows gasoline demand fell from 8.72 million barrels per day to 8.32 million, while supply rose to 214.4 million barrels. Production also increased, averaging 9.8 million barrels per day. Meanwhile, crude oil inventories grew slightly, though they remain about 3% below the five-year average for this time of year.
Across Tennessee, regional prices vary. Jackson drivers are paying the most at $2.64 per gallon, followed by Memphis at $2.61 and Nashville at $2.59. On the lower end, Clarksville and Chattanooga both average $2.46, with Cleveland close behind at $2.49.
With holiday travel approaching, the downward trend offers welcome news for families planning road trips. If demand remains weak and crude oil prices stay steady, experts say Tennessee drivers could continue to enjoy lower prices through the end of the year.
|
|
Monday |
Sunday |
Week Ago |
Month Ago |
One Year Ago |
|
Tennessee |
$2.564 |
$2.557 |
$2.607 |
$2.603 |
$2.679 |
|
Chattanooga |
$2.465 |
$2.451 |
$2.512 |
$2.507 |
$2.638 |
|
Knoxville |
$2.544 |
$2.553 |
$2.584 |
$2.576 |
$2.617 |
|
Memphis |
$2.611 |
$2.610 |
$2.641 |
$2.640 |
$2.709 |
|
Nashville |
$2.598 |
$2.576 |
$2.651 |
$2.636 |
$2.726 |
|
Click here to view current gasoline price averages |
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Gas Price Survey Methodology - AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.
