AAA: TN gas prices fall nine cents

Published 2:00 pm Monday, February 6, 2023

Tennessee moves to 10th least expensive market in the nation

NASHVILLE — For the first time in five weeks the Tennessee gas price average moved less expensive. Over last week gas prices declined nine cents, on average. The Tennessee Gas Price average is now $3.19 which is 20 cents more expensive than one month ago and nearly six cents more than one year ago.
“We’re starting to see pump prices move lower thanks to a sharp drop in the oil and gasoline futures markets,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Right now, a combination of domestic and global factors are working together to place downward pressure on pump prices. However, keep in mind that the market still remains volatile. This week, barring any big changes in the crude oil market, it’s likely Tennesseans will continue to see pump prices fluctuate lower.”

Quick Facts
* 11% of Tennessee gas stations have prices below $3.00
* The lowest 10% of pump prices are $2.95 for regular unleaded
* The highest 10% of pump prices are $3.50 for regular unleaded
* Tennessee is the 10th least expensive market in the nation

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National Gas Prices
The national average for a gallon of gas barely budged over the past week, drifting lower by three cents to $3.47. Last week’s decision by OPEC+ to maintain current production levels and not make any cuts led to lower oil prices. But Friday’s blockbuster U.S. report of 517,000 jobs added in January, dropping the unemployment rate to a 54-year low of 3.4%, may have the opposite effect. Are recession fears fading, and could a healthier global economy lead to more demand for oil and higher prices?

According to data from the Energy Information Administration (EIA), gas demand rose from 8.14 million to 8.49 million b/d last week. Meanwhile, total domestic gasoline stocks increased by 2.6 million bbl to 234.6 million bbl. Despite rising gas demand, total supply growth has helped limit pump price increases.

On Feb. 6, the national average of $3.47 is 18 cents more than a month ago and four cents more than a year ago.

National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by $2.49 to settle at $73.39. Crude prices fell last week amid ongoing market concerns that if a recession occurs this year, crude demand and prices would likely decline. Additionally, crude prices dropped after the EIA reported that total commercial stocks increased by 4.2 million bbl to 452.7 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), Nashville ($3.22), Jackson ($3.20)
* Least expensive metro markets — Cleveland ($3.14), Clarksville ($3.16), Kingsport ($3.16)