Tennessee gas prices fall another 9 cents

Published 2:41 pm Monday, December 19, 2022

NASHVILLE — This week marks the fifth straight week of declines in the Tennessee gas price average. Over last week, gas prices across the state fell another nine cents, on average, and are now at the lowest point we have seen since May 2021. The Tennessee Gas Price average is now $2.75 which is 48 cents less expensive than one month ago and nearly 26 cents less than one year ago.

“Gas prices have been declining for five straights weeks here in Tennessee — and 4 out of those 5 weeks brought us double-digit declines,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Low seasonal gasoline demand alongside consistently lower oil prices are continuing to give the gift of falling prices at the pump. Barring any unexpected rebounds in the price of oil, it’s likely the trend of falling gas prices will continue through the end of the year.”

Falling gas prices are an early present for all drivers, but especially for the 2.4 million Tennesseans who are forecast to take a year-end holiday road trip. Today’s state average is 24 cents per gallon less than what travelers paid at the pump last Christmas ($2.99).

Holiday shoppers may have a little more jingle in their pockets this year thanks to plummeting gas prices. The national average pump price slid 12 cents since last week to $3.14. There are now about 20 states with averages below $3 per gallon.

According to data from the Energy Information Administration (EIA), gas demand decreased slightly from 8.36 to 8.26 million b/d last week. This coincides with the arrival of the winter driving season, when fewer people hit the roads due to shorter days and more lousy weather. Meanwhile, total domestic gasoline stocks rose significantly by 4.5 million bbl to 223.6 million bbl. Increasing supply and lower gasoline demand are pushing pump prices lower.

On Dec. 19 the national average of $3.14 is 54 cents less than a month ago and 16 cents less than a year ago.

At the close of Friday’s formal trading session, WTI decreased by $1.82 to settle at $74.29. Crude prices decreased at the end of last week due to a weaker dollar and ongoing market concerns that a recession next year could push oil demand and prices lower. For this week, lingering market fears about stalled or reversing economic growth could continue to push prices down. Additionally, the EIA reported that total domestic commercial crude stocks expanded substantially by 10.2 million bbl to 424.1 million bbl.

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