AAA: TN gas prices fall nine cents
Published 12:43 pm Monday, February 27, 2023
Tennessee is the 9th least expensive market in the nation
NASHVILLE — Gas prices across the state are once again trending lower. Over last week, pump prices fell nine cents, on average. The Tennessee Gas Price average is now $3.01 which is 28 cents less expensive than one month ago and 42 cents less than one year ago.
“The recent increases we’ve seen at the pump were likely a delayed response to an oil price hike that happened a couple of weeks ago,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “The good news for Tennesseans is that we’re once again seeing modest declines in our gas prices. Over the past two weeks we’ve seen wholesale prices drop a total of 15 cents, which means that it’s likely we’ll continue to see prices move lower in the short term. This week, it’s very likely that we’ll see the state average drop below $3 per gallon.”
* 65% of Tennessee gas stations have prices below $3.00
* The lowest 10% of pump prices are $2.78 for regular unleaded
* The highest 10% of pump prices are $3.38 for regular unleaded
* Tennessee is the 9th least expensive market in the nation
National Gas Prices
The national average for a gallon of gas fell five cents since last week to $3.36. The main reason is the price of oil, which fell into the mid $70s per barrel, nearly $5 cheaper than a week ago.
According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 8.27 million b/d to 8.91 million b/d last week. Meanwhile, total domestic gasoline stocks decreased by 1.8 million bbl to 240.1 million bbl last week. However, fluctuating oil prices have contributed to pushing pump prices lower. But if gas demand keeps rising amid tightening domestic stocks, drivers may see an end to future pump price drops.
On Feb. 27, the national average of $3.36 is 14 cents less than a month ago and 24 cents less than a year ago.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI decreased by $2.41 to settle at $73.95. Crude prices have declined due to the strengthening of the dollar and market concerns about increasing domestic oil inventories. An increase in supply could mean that demand may not move as high as anticipated. EIA reported that total domestic commercial crude inventories increased substantially by 7.6 million bbl to 479 million bbl last week.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Tennessee Regional Prices
* Most expensive metro markets – Memphis ($3.10), Morristown ($3.06), Knoxville ($3.05)
* Least expensive metro markets – Chattanooga ($2.91), Clarksville ($2.96), Kingsport ($2.97)