AAA reports huge jump in gas prices across Tennessee

Published 10:15 am Tuesday, March 8, 2022

FROM STAFF REPORTS
As many have noticed recently, gas prices in Tennessee have risen exponentially as of late, with the Automobile Association of America (AAA) reporting that the average price for one gallon has jumped 43 cents since last week.
According to the group, the average gas price in Tennessee is now $3.87 per gallon, which is 43 cents more expensive than one month ago and $1.30 more than one year ago.
“Unfortunately, it isn’t looking like Tennesseans will see a break at the pump in the near future,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “We could potentially see record high prices at the pump as surging oil prices are continuing to place upward pressure on the global oil market.”
On Friday, AAA released fuel-saving tips for drivers that can be found at https://media.acg.aaa.com/aaa-shares-fuel-saving-tips-as-pain-at-pump-intensifies.htm.
As of Monday, 94% of Tennessee gas stations have prices below $4.00, the lowest 10% of pump prices are $3.62 for regular unleaded, and the highest 10% of pump prices are $4.10 for regular unleaded.
As the conflict between Russia and Ukraine continues, oil prices have soared, leading to higher pump prices in the United States. The national average for a gallon of gas is $4.06, a staggering 45 cents more than a week ago, 62 cents more than a month ago and $1.30 more than a year ago. The national average has not been this high since July 2008.
Last week, the International Energy Agency (IEA) announced a coordinated release of crude oil from its 31 member countries’ strategic reserves, including the U.S., Germany, Canada, South Korea, and Mexico, to help counter the impact of rising crude prices. On Friday, IEA said member states committed to releasing a total of 61.7 million bbl from their strategic reserves to reassure markets roiled by the fallout from Russia’s invasion of Ukraine. This amount — half of which is expected to come from the U.S. — is the largest coordinated release since IEA was founded in 1974. Despite this announcement, the impact on pricing has been limited given that the amount of oil planned for release is small in comparison to the amount that flows daily from Russia to other countries around the globe. According to IEA, Russia exports approximately 5 million b/d of crude oil, representing about 12% of its global trade.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 500,000 bbl to 246 million bbl last week. Meanwhile, gasoline demand rose slightly from 8.66 million b/d to 8.74 million b/d. The increase in gas demand and a reduction in total supply contribute to rising pump prices. But, increasing oil prices play a leading role in pushing gas prices higher. Consumers can expect the current trend at the pump to continue as long as crude prices climb.
In terms of regional prices in Tennessee, the cities contributing to the largest metropolitan markets include Clarksville at $3.92 per gallon, Morristown at $3.91 per gallon, and Knoxville at $3.90 per gallon.
On the other hand, the least expensive metropolitan markets include Chattanooga at $3.82 per gallon, Kingsport at $3.83 per gallon, and Memphis at $3.84 per gallon.

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