AAA: TN gas prices fall 6 cents

Published 1:58 pm Monday, March 20, 2023

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Tennessee is the 9th least expensive market in the nation
NASHVILLE – After a moderate price hike heading into last week, gas prices across the state are once again trending lower and fell an average of six cents over last week. The Tennessee Gas Price average is now $3.09 which is a penny less expensive than one month ago and 95 cents less than one year ago.
“Gas prices are continuing to fluctuate across the state, but it’s not all bad news for drivers. Significant losses in the oil market last week helped push pump prices lower across the state,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Typically when we experience times of increased demand alongside tighter gasoline supplies we would expect pump prices to trend higher; however, lower crude oil prices seem to have mitigated this effect. Unless market fundamentals rebound this week, lower crude oil prices could likely be an indicator that pump prices will move lower again this week.”

Quick Facts
* 37% of Tennessee gas stations have prices below $3.00
* The lowest 10% of pump prices are $2.87 for regular unleaded
* The highest 10% of pump prices are $3.44 for regular unleaded
* Tennessee is the 9th least expensive market in the nation

National Gas Prices
Despite the sour economic news roiling the stock and oil markets, the national average for a gallon of regular gasoline had a calm week, falling to $3.44. Meanwhile, the global oil price plunged into the low to mid $60 per barrel, a level not seen since August 2021.
According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 8.56 million to 8.59 million b/d last week. Meanwhile, total domestic gasoline stocks decreased by 2.1 million bbl to 236 million bbl last week. Typically, increased demand amid tighter supply would push pump prices higher; however, lower oil prices have countered this effect. If crude oil prices keep falling, drivers could see pump prices decline.
On March 20, the national average of $3.44 is three cents more than a month ago but 81 cents less than a year ago.

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National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI decreased by $3.72 to settle at $67.61. Crude prices dropped last week amid rising market concern about the health of the global banking sector. Low confidence in the sector and fears that regulatory responses could tip the economy into a recession could push crude demand down alongside prices. Additionally, the EIA reported that total domestic commercial crude inventories increased by 1.6 million bbl to 480.1 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 – Nashville ($3.14), Memphis ($3.12), Cleveland ($3.09)
* Least expensive metro markets – Kingsport ($3.05), Chattanooga ($3.05), Knoxville ($3.06)