AAA: TN gas prices fall nearly four cents
Published 3:32 pm Monday, September 19, 2022
Tennessee is the sixth least expensive market in the nation
NASHVILLE — Tennessee gas prices fell, on average, four cents per gallon over last week. This marks the third straight week of declines in the state gas price average. The Tennessee Gas Price average is now $3.22 which is nearly 24 cents less expensive than one month ago and 33 cents more than one year ago.
“Tennessee gas prices are still declining, but at a much slower rate compared to the last two weeks,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Ongoing concerns that a global recession and potential U.S. interest rate hike could stifle global fuel demand are putting downward pressure on pump prices. However, certain factors — like geopolitical tensions and hurricane season — still have the potential to create uncertainty in the market and cause minor fluctuations in gas prices.”
• 65% of Tennessee gas stations have prices below $3.25
• The lowest 10% of pump prices are $2.99 for regular unleaded
• The highest 10% of pump prices are $3.56 for regular unleaded
• Tennessee is the 6th least expensive market in the nation
National Gas Prices
Fewer drivers fueling up helped the national average pump price to drop four cents in the past week to reach $3.67. But it’s the smallest weekly decline in months and may signal that the streak of daily falling national average gas prices, approaching 100 days, is nearly finished.
Meanwhile, most of the country is now using less expensive winter blend gasoline, so modest pump price reductions have occurred. Only California has yet to make the switch, but that happens on November 1.
According to the Energy Information Administration (EIA), gas demand decreased from 8.73 million b/d to 8.49 million b/d last week. And total domestic gasoline stocks declined by 1.8 million bbl to 213 million bbl. Although gasoline demand has decreased, fluctuating oil prices have led to smaller pump price decreases. If oil prices spike, the national average will likely reverse as pump prices increase.
On September 19, the national average of $3.67 is 24 cents less than a month ago but 48 cents more than a year ago.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by a penny to settle at $85.11. While a strengthening dollar helped to cap crude price increases at the end of last week, prices decreased earlier in the week after the Consumer Price Index showed that inflation remains stronger than expected. As a result, the market is concerned that the Federal Reserve could take more drastic measures that could lead to a recession, which would likely lead to a drop in crude demand and prices. For this week, persistent demand concerns could put downward pressure on prices. EIA’s latest weekly report also showed that total commercial crude inventories increased by 2.4 million bbl to 429.6 million bbl.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Tennessee Regional Prices
• Most expensive metro markets — Morristown ($3.33), Jackson ($3.31), Memphis ($3.30)
• Least expensive metro markets — Clarksville ($3.10), Johnson City ($3.14), Chattanooga ($3.15)