Last week marked the second consecutive week of declines in the Tennessee Gas Price Average. Gas prices across the state fell 10 cents, on average over last week. The Tennessee Gas Price average is now $3.09 which is nearly 14 cents more expensive than one month ago, but 16 cents less than one year ago.
“Tennesseans may be finding a little more money in their wallets for those last minute Valentine’s gifts this week as pump prices are still falling across the state,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Gas prices have dropped about 20 cents in the last two weeks, and this trend could continue if market conditions hold steady.”
38% of Tennessee gas stations have prices below $3.00
The lowest 10% of pump prices are $2.84 for regular unleaded
The highest 10% of pump prices are $3.45 for regular unleaded
Tennessee is the 8th least expensive market in the nation
National Gas Prices
According to new data from the Energy Information Administration (EIA), gas demand dipped slightly from 8.49 million to 8.43 million b/d last week. The current gas demand rate is approximately 700,000 b/d lower than the rate during the first week of February 2022, helping to explain why gas prices are declining. Meanwhile, total domestic gasoline stocks increased significantly by 5 million bbl to 239.6 million bbl last week. If gas demand remains low amid growing total domestic stocks, pump prices may drop further.
Today’s national average of $3.41 is 13 cents more than a month ago, but nearly seven cents less than a year ago.
National Oil Market Dynamics
At the close of last Wednesday’s formal trading session, WTI increased by $1.33 to settle at $78.47. Crude prices rose last week due to persistent market optimism that global oil demand will be stronger than expected, particularly as China’s economy re-opens after strict lockdowns due to rising coronavirus infection rates. Oil prices rose despite the EIA reporting that total domestic commercial crude inventories increased by 2.4 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 – Memphis ($3.19), Morristown ($3.15), Knoxville ($3.12)
Least expensive metro markets – Clarksville ($2.99), Cleveland ($3.01), Chattanooga ($3.02)