AAA: TN gas prices rise another 13 cents
Published 10:50 pm Monday, May 16, 2022
Another week of rising gas prices likely
NASHVILLE — Another week of rising gas prices is likely for Tennesseans. Since last Monday, gas prices across the state have risen nearly 13 cents. The Tennessee Gas Price average is now $4.20 which is nearly 36 cents more expensive than one month ago and $1.31 more than one year ago.
“Gas prices in Tennessee have risen nearly 34 cents, on average, so far this month. For the last seven days in a row, a new highest recorded state average has been set, ” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Tennesseans are likely to feel more pain at the pump this week as global supplies still remain tight, gasoline futures are surging, and the market is bracing for a stronger summer driving season compared to last year.”
– 96% of Tennessee gas stations have prices above $4.00
– The lowest 10% of pump prices are $4.04 for regular unleaded
– The highest 10% of pump prices are $4.49 for regular unleaded
National Gas Prices
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 3.6 million bbl to 225 million bbl last week. Gasoline demand also decreased slightly from 8.86 million b/d to 8.7 million b/d. Typically, lower demand would put downward pressure on pump prices. However, crude prices remain volatile, and as they surge, pump prices follow suit. Pump prices will likely face upward pressure as oil prices stay above $105 per barrel.
Meanwhile, the switch to the more expensive summer blend of gasoline, which usually adds seven to ten cents per gallon depending on the market, is happening now. This switchover should be complete nationwide by early June. This summer blend switch is an annual event. It is unrelated to the Biden administration’s announcement a few weeks ago to allow the higher ethanol E15 gas blend to remain on sale throughout the summer until September.
Today’s national average for a gallon of gas is $4.48, which is 40 cents more than a month ago, and $1.43 more than a year ago.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by $4.36 to settle at $110.49/bbl. At the beginning of last week, the price of crude oil decreased due to global market concern that crude demand will suffer as COVID lockdowns in China remain in place. However, crude prices reversed course at the end of the week over growing market worries that Ukrainian and European Union actions against Russian oil and natural gas companies could spark retaliation by Russia, which would lead to more market disruption and uncertainty. Crude prices could fall this week if demand concerns continue to weigh the market down. Additionally, EIA reported that domestic crude supply increased by 8.5 million bbl to 424.2 million bbl. The current level is approximately 12.5 percent lower than during the first week of May 2021.
Drivers can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad, and Android. The app can also map a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more at AAA.com/mobile.
Tennessee Regional Prices
– Most expensive metro markets — Johnson City ($4.26), Memphis ($4.25), Morristown ($4.24)
– Least expensive metro markets — Chattanooga ($4.14), Cleveland ($4.16), Clarksville ($4.16)
Ways to Save on Gasoline
– Combine errands to limit driving time.
– Shop around for the best gas prices in your community.
– Pay with cash. Some retailers charge extra per gallon for customers who pay with a credit card.
– Remove excess weight in your vehicle. Every 100 pounds taken out of the vehicle improves fuel economy by 1-2 percent.
– Drive conservatively. Aggressive acceleration and speeding reduces fuel economy.