AAA: TN gas prices decline for 10th consecutive week

Published 12:42 pm Monday, August 22, 2022

NASHVILLE — Tennessee gas prices fell, on average, nearly six cents over last week. This brings Tennessee into the 10th consecutive week of state gas price average declines, and the cheapest state average since February 28. The Tennessee Gas Price average is now $3.44 which is 55 cents less expensive than one month ago and 59 cents more than one year ago.

“After seven straight weeks of double-digit declines, the state gas price average is still falling, however, at a much slower pace this week,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “This could be a sign that pump prices may soon begin to stabilize and level out. Another factor that could potentially affect pump prices is hurricane season. Hurricanes have the potential to disrupt oil production in the Gulf of Mexico, impacting large coastal refineries, and potentially impacting local pump prices.”

• 71% of Tennessee gas stations have prices below $3.50

• The lowest 10% of pump prices are $3.13 for regular unleaded

• The highest 10% of pump prices are $3.84 for regular unleaded

• Tennessee is the 5th least expensive market in the nation

Stable global oil prices and modest domestic demand for gasoline led pump prices to fall a nickel in the past week to $3.90.

According to data from the Energy Information Administration (EIA), gas demand rose slightly from 9.12 million b/d to 9.35 million b/d last week, which is nearly identical to this time last year. Total domestic gasoline stocks decreased by nearly 5 million bbl to 215.7 million bbl. Although gasoline demand has risen and supplies have tightened, easing oil prices have helped lower pump prices. If oil prices edge lower, drivers will likely continue to see falling pump prices.

On August 22, 2022, the national average of $3.90 is 51 cents less than a month ago but 74 cents more than a year ago.

At the close of Friday’s formal trading session, WTI increased by 27 cents to settle at $90.77. Although crude prices increased at the end of the week due to EIA reporting that total domestic crude supply decreased by 7 million bbl to 425 million bbl, crude prices declined earlier in the week after U.S. housing data showed that homebuilding dropped to its lowest level in 1.5 years in July. Higher mortgage rates, alongside the rising costs of materials, played a role in decreasing the demand for new housing. Lower housing demand also pushed oil demand expectations lower. If crude demand expectations remain low this week, crude prices could decline further.

Drivers can find current gas prices along their route using the AAA TripTik Travel planner.

• Most expensive metro markets – Morristown ($3.67), Knoxville ($3.59), Memphis ($3.54)

• Least expensive metro markets – Clarksville ($3.24), Chattanooga ($3.31), Cleveland ($3.33)