AAA: TN gas prices fall nearly 9 cents

Published 12:14 pm Wednesday, July 6, 2022

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Tennessee is the 8th least expensive market in the nation

NASHVILLE — Gas prices across Tennessee are continuing to inch lower as this week marks the third straight week of declines in the state. Gas prices fell nearly nine cents over the course of last week, providing a much needed break at the pump for the Tennesseans that took a road trip over the holiday weekend. The Tennessee Gas Price average is now $4.41 which is nearly eight cents less expensive than one month ago and $1.53 more than one year ago.
“Even though gas prices were at record highs for the Independence Day holiday, Tennessee travelers were able to reap the benefits of a three-week decline in gas prices heading into the holiday weekend, “said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “It’s difficult to say how long this trend will continue with an expected busy summer travel season happening alongside a very volatile crude oil market — but at least for now, Tennesseans can enjoy a bit of good news at their local gas pump.”
Quick Facts
* 76% of Tennessee gas stations have prices below $4.50
* The lowest 10% of pump prices are $4.09 for regular unleaded
* The highest 10% of pump prices are $4.77 for regular unleaded
* Tennessee is the 8th least expensive market in the nation
National Gas Prices
The national average for a gallon of gasoline fell to $4.80, down eight cents over the past week. The primary reason for the decline is lower demand at the pump as fewer people fueled up over the past two weeks. The lull, however, could end with the arrival of the summer driving season.

According to the latest Energy Information Administration (EIA) data, gas demand currently sits at 8.93 million b/d, which is lower than last year’s rate of 9.11 million b/d at the end of June. On the other hand, total domestic gasoline stocks increased by 2.6 million bbl to 221.6 million bbl. These supply/demand dynamics, along with decreasing oil prices, have pushed pump prices lower. If these trends continue, drivers will likely continue to see relief at the pump.

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On July 5 the national average of $4.80 is four cents less than a month ago and $1.67 more than a year ago.

National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by $2.67 to settle at $108.43. The price of crude increased at the end of last week due to market optimism that demand will remain robust throughout the summer. However, crude prices faced strong resistance amid broad market concern regarding the potential for economic growth to slow or stall due to rising interest rates and inflation, which could send prices lower this week if market concerns persist. A lower-than-expected economic growth rate could cause crude demand to decline, leading prices to follow suit. Additionally, EIA reported that total domestic crude stocks decreased by 2.7 million bbl to 415.6 million bbl last week, which is nearly 37 million bbl lower than at the end of June 2021.

Tennessee Regional Prices
• Most expensive metro markets – Memphis ($4.51), Knoxville ($4.51), Jackson ($4.50)
• Least expensive metro markets – Cleveland ($4.18), Chattanooga $4.29), Clarksville $4.33)

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