AAA: TN gas prices up a penny
Published 2:22 pm Monday, October 3, 2022
Tennessee remains the 5th least expensive market in the nation
NASHVILLE — The downward trend in Tennessee pump prices came to an end last week. The state gas price average increased slightly at the end of last week, likely due to the uncertainty surrounding the threat of Hurricane Ian, but then drifted lower over the weekend. Today’s gas price average is only a penny more expensive than last Monday’s average. The Tennessee Gas Price average is now $3.18 which is nearly 21 cents less expensive than one month ago and nearly 29 more than one year ago.
“Even though the downward trend for Tennessee pump prices came to an end last week, we still only saw minimal fluctuation in our state gas price average,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “We’re still seeing lingering market concerns and volatility surrounding a possible recession as well as a tightening of supplies. Fluctuation in pump prices is likely in the short term, however, at this point, it’s not likely we will see any huge surges in pump prices if market conditions hold steady.”
• 79% of Tennessee gas stations have prices below $3.25
• The lowest 10% of pump prices are $2.96 for regular unleaded
• The highest 10% of pump prices are $3.52 for regular unleaded
• Tennessee is the 5th least expensive market in the nation
National Gas Prices
The national average pump price for a gallon of gas maintained its recent surge, rising seven cents over the past week to hit $3.79. Tight supply and increased demand as more drivers fuel up are the main culprits.
According to data from the Energy Information Administration (EIA), gas demand increased nationally from 8.32 million b/d to 8.83 million b/d last week. Total domestic gasoline stocks decreased by 2.4 million bbl to 212.2 million bbl. If demand remains robust as supply tightens, drivers should brace for rising pump prices through the weekend.
October 3, 2022, the national average of $3.79 is the same as a month ago but 60 cents more than a year ago.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by $1.74 to settle at $79.49. Crude prices decreased at the end of last week due to lingering market concerns that demand will decline if global economic growth stalls or decreases due to a recession. However, reports have emerged that the Organization of the Petroleum Exporting Countries (OPEC) and its allies — including Russia — known as OPEC+ intend to announce collective oil production cuts at their next meeting on October 5 in Vienna. If OPEC+ reduces production, crude prices could rise this week. Additionally, according to the EIA’s latest weekly report, total domestic commercial crude inventories decreased slightly by 200,000 bbl to 430.6 million bbl.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Tennessee Regional Prices
• Most expensive metro markets — Memphis ($3.26), Jackson ($3.24), Morristown ($3.21)
• Least expensive metro markets — Chattanooga ($3.09), Johnson City ($3.10), Kingsport-Bristol ($3.10)