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Tennessee is the 5th least expensive market in the nation

NASHVILLE – Gas prices across Tennessee have been trending lower for three straight weeks. On average, gas prices across the state fell ten cents over last week. The Tennessee Gas Price average is now $3.12 which is 18 cents less expensive than one month ago and 94 cents less than one year ago.

“Tennessee gas prices have been falling for three weeks, and the trend is likely to continue,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Fears of a global economic recession are continuing to place downward pressure on crude oil prices, which, in turn, is also pushing pump prices lower. Right now, we’re seeing a wide range of pump prices across the state thanks to volatility in the oil market, and this will likely continue until pump prices have had enough time to stabilize into usual regional trends.”

Quick Facts

* 39% of Tennessee gas stations have prices below $3.00
* The lowest 10% of pump prices are $2.85 for regular unleaded
* The highest 10% of pump prices are $3.53 for regular unleaded
* Tennessee is the 5th least expensive market in the nation

National Gas Prices

The fear of a global economic recession is leading to falling pump prices. The price for oil has dropped nearly $20 per barrel recently to the upper $60s, which has spurred the retreat for gas prices. The national average for a gallon of regular gasoline fell eight cents since last week to hit $3.53.

According to new data from the Energy Information Administration (EIA), gas demand decreased significantly from 9.51 to 8.62 million b/d last week. The drop in demand is more in line with what market observers expected last week. The estimate could be revised when EIA releases final demand measurements for May. Meanwhile, total domestic gasoline stocks increased by 1.8 million bbl to 222.9 million bbl. Lower demand, alongside an increase in stocks, has contributed to pushing pump prices lower. If demand remains low, drivers will likely continue to see pump prices decline.

Today’s national average of $3.53 is six cents less than a month ago and 78 cents less than a year ago.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI decreased by $3.06 to settle at $68.60. Oil prices decreased last week amid ongoing market concerns that rising interest rates will tip the economy into a recession. If a recession occurs, oil demand and prices will likely decline. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 1.3 million bbl to 459.6 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 – Knoxville ($3.20), Memphis ($3.18), Morristown ($3.15)
* Least expensive metro markets – Chattanooga ($2.96), Clarksville ($3.01), Cleveland ($3.01)