AAA: TN gas prices drop ten cents

Published 2:54 pm Monday, November 28, 2022

NASHVILLE — Tennesseans had a little extra to be thankful for last week as gas prices continued to trend lower, falling an average of 10 cents over the course of the week. The Tennessee Gas Price average is now $3.10 which is 23 cents less expensive than one month ago and only half a penny more expensive than one year ago.

“We were able to avoid record-high gas prices for Thanksgiving this year in Tennessee, and it looks like the downward trend at the pump is likely to continue for now,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Pump prices are seeing downward pressure from steep drops in oil pricing and strong gains in domestic gasoline supplies. Barring any major changes in the overall market, it’s looking like Tennesseans can expect more drops at the pump this week.”

The national average pump price for a gallon of gas dropped 12 cents in the past week. It is the steepest weekly decline since early August — nearly four months ago. Meanwhile, the cost of oil edged lower on fears of economic slowdowns elsewhere around the globe. Because of these factors, the national average for a gallon of gas fell to $3.54.

According to data from the Energy Information Administration (EIA), gas demand fell from 8.74 million to 8.33 million b/d last week. Meanwhile, total domestic gasoline stocks rose by more than 3 million bbl to 211 million bbl. Increasing supply and fewer drivers fueling up have pushed pump prices lower. As demand remains low and stocks grow, drivers will likely see pump prices keep falling.

No Nov. 28, the national average of $3.54 is 22 cents less than a month ago and 15 cents more than a year ago.

At the close of Friday’s formal trading session, WTI decreased by $1.66 to settle at $76.28. Crude prices dropped last week despite the EIA reporting that total domestic commercial crude stocks had declined substantially by 3.7 million bbl. Instead, prices declined because the market is concerned that oil demand could decrease due to growing economic concerns. For this week, persistent concerns that economic growth might stall or reverse course could push prices lower. However, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, collectively known as OPEC+, are meeting on December 4. In October, OPEC+ decided to cut its collective crude oil output by 2 million b/d through 2023. If OPEC+ decides to revise its production reduction agreement to more than 2 million b/d, prices could spike.

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