Pump prices are 18 cents less than the average price on Election Day 2016

Published 3:53 pm Monday, November 2, 2020

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NASHVILLE – The Tennessee gas price average continues to decline and has dropped four cents over last week. The Tennessee Gas Price average is now $1.87 which is seven cents less than one month ago and 43 cents less than one year ago. 
Tennessee’s state gas price average has declined the past 20 consecutive days for a total discount of seven cents. 
“Tennessee drivers are seeing the cheapest prices at the pump since June,” said Megan Cooper, spokesperson, AAA – The Auto Club Group. “As we approach Election Day, drivers are paying, on average, 18 cents less than what they paid on Election Day 2016.”
Tennessee drivers found the lowest gas prices for the month of October in 16 years. The monthly average was $1.93 per gallon, which is 41 cents less than October 2019 and 72 cents less than what drivers paid in October 2018. 
Quick Facts
– 91% of Tennessee gas stations have prices below $2.00
– The lowest 10% of pump prices are $1.63 for regular unleaded
– The highest 10% of pump prices are $2.21 for regular unleaded
– Tennessee remains the 9th least expensive market in the nation
National Gas Prices
Mounting concerns about the increase in global coronavirus cases and the reinstatement of lockdown policies in some countries has driven crude oil prices down to the lowest closing price – $35/bbl – since June.
In comparison, last year at this time crude was pricing at about $20/bbl more expensive.
As crude prices decreased last week, the U.S. saw fluctuation in gasoline demand and supply. Demand increased from 8.2 million b/d to 8.5 million b/d while supply decreased 90,000 b/d to 226 million bbl.
Despite the jump in demand, motorists are paying less to fill up. The national average pushed four cents cheaper to $2.12, while every state except South Dakota (+1 cent) saw gas prices hold steady or decrease.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 38 cents to settle at $35.79. Domestic crude prices decreased in light of market concern about increasing coronavirus infections worldwide, which could lower crude demand.
EIA’s weekly report has also contributed to the decline in prices after it showed that total domestic crude inventories grew by 4.3 million bbl to 492.4 million bbl.
If demand concerns continue this week, crude prices will likely decrease again. 
Tennessee Regional Prices
– Most expensive metro markets –  Morristown ($1.94), Memphis ($1.94), Jackson ($1.91)
– Least expensive metro markets – Cleveland ($1.70), Chattanooga ($1.75), Clarksville ($1.83)

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