AAA: TN gas prices fall seven cents
Published 1:56 pm Monday, April 24, 2023
Tennessee is the 6th least expensive market in the nation
NASHVILLE – For the first time in over four weeks, the state gas price average is trending lower. Gas prices across Tennessee fell seven cents, on average, over last week. The Tennessee Gas Price average is now $3.31 which is 17 cents more expensive than one month ago but 54 cents less than one year ago.
“Thanks to decreasing gasoline demand, increasing domestic gasoline stocks, and slightly lower crude oil prices we’re starting to see the upward pressure on pump prices begin to ease,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Barring any rebounds in the price of crude oil, it’s likely that we’ll continue to see a bit of a break at the pump this week across the state.”
* 31% of Tennessee gas stations have prices below $3.25
* The lowest 10% of pump prices are $3.07 for regular unleaded
* The highest 10% of pump prices are $3.61 for regular unleaded
* Tennessee is the 6th least expensive market in the nation
National Gas Prices
A drop in gasoline demand and falling oil prices may combine to take the air out of rising pump prices. The national average for a gallon of regular gasoline fell a penny since last week to hit $3.66.
According to new data from the Energy Information Administration (EIA), gas demand decreased from 8.94 to 8.52 million b/d last week. Meanwhile, total domestic gasoline stocks increased slightly by 1.3 million bbl to 223.5 million bbl. Lower demand, alongside growth in stocks, would typically push pump prices down; however, elevated oil prices over the past month pushed them higher.
Meanwhile, U.S. refineries are returning to service from extensive winter/spring maintenance. The EIA said total input rose last week by 330,000 b/d to 16.44 million b/d, putting it above this time last year. More refinery operations will be restarted in the next three weeks, with some planned work extending into June.
On April 24, the national average of $3.66 is 22 cents more than a month ago but 46 cents less than a year ago.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI decreased by $1.70 to settle at $79.16. Oil prices fell last week amid ongoing market concerns that future interest rate increases could tip the economy into a recession, likely leading to reduced oil demand and prices. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 4.5 million bbl to 466 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 ($3.40), Cleveland ($3.35), Clarksville ($3.34)
* Least expensive metro markets – Chattanooga ($3.19), Kingsport ($3.26), Johnson City ($3.27)