Tennessee is the fifth least expensive market in the nation
Tennessee gas prices continue to slowly decline, falling five cents on average over last week. The Tennessee Gas Price average is now $3.17 which is 28 cents less expensive than one month ago and 28 cents more than one year ago.
“While the national gas price average has reversed course and is now trending more expensive, gas prices here in Tennessee are still continuing to decline, “ said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “There’s still downward pressure on pump prices in the market, however, Hurricane Ian has the potential to influence the market later in the week. The good news for Tennesseans, is that Tennessee’s gasoline is primarily provided by refineries in Texas and Louisiana, so it’s unlikely that the storm itself would cause local pump prices to spike.”
20% of Tennessee gas stations have prices below $3.00
The lowest 10% of pump prices are $2.91 for regular unleaded
The highest 10% of pump prices are $3.54 for regular unleaded
Tennessee is the 5th least expensive market in the nation
National Gas Prices
Gas prices rose a nickel over the past week, as the national average pump price hit $3.72. The main reason is higher regional prices on the West Coast and the Midwest due to refinery issues ranging from planned maintenance to a fire. But low domestic demand as fewer drivers fuel up and much lower oil prices have helped to blunt some of the impact. On Friday, the price of oil slipped below $80 a barrel for the first time since January, primarily due to fears of a recession-led global economic slowdown.
Meanwhile, according to data from the Energy Information Administration (EIA), gas demand decreased from 8.49 million b/d to 8.32 million b/d last week. Moreover, according to the EIA, total domestic gasoline stocks increased by 1.6 million bbl to 214.6 million bbl. Although gasoline demand has decreased, tight supply and fluctuating oil prices have increased the national average price. However, if gas demand remains low pump price increases will likely be minimal.
Today’s national average of $3.72 is 14 cents less than a month ago but 54 cents more than a year ago.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by $4.75 to settle at $78.74. Crude prices reached a point not seen since early January 2022, as the market continues to worry that efforts by the Federal Reserve to curb inflation could lead to a recession. If a recession occurs, crude demand and prices would likely decline. For this week, crude prices could continue to decrease if recession fears persist. Additionally, EIA’s latest weekly report showed that total commercial crude inventories increased by 1.2 million bbl to 430.8 million bbl.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Tennessee Regional Prices
Most expensive metro markets – Memphis ($3.28), Jackson ($3.27), Morristown ($3.25)
Least expensive metro markets – Clarksville ($3.03), Chattanooga ($3.08), Cleveland ($3.12)