AAA: TN gas prices rise three cents
Published 1:14 pm Monday, May 15, 2023
Tennessee falls to 8th least expensive market in the nation
NASHVILLE – After falling for three straight weeks, Tennessee gas prices are now trending slightly higher, rising three cents, on average, over last week. The Tennessee Gas Price average is now $3.15 which is 23 cents less expensive than one month ago and $1.04 less than one year ago.
“Our downward trend at the pump in Tennessee technically came to an end this week, but we’re still only seeing our state average up by three cents compared to last week,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “The overall oil market remains volatile, so additional fluctuation in pump prices is expected as we head towards the Memorial Day holiday weekend. Last week brought a wide range of shifts in pump prices across our state metros, but the silver lining is that we are seeing prices over $1.00 cheaper than we were at this time last year.”
25% of Tennessee gas stations have prices below $3.00
The lowest 10% of pump prices are $2.90 for regular unleaded
The highest 10% of pump prices are $3.52 for regular unleaded
Tennessee is the 8th least expensive market in the nation
National Gas Prices
The national average for a gallon of gas has held steady since last week and remains at $3.53. The lackluster movement can be attributed to higher demand for gasoline but a lower cost for oil canceling each other out.
According to new data from the Energy Information Administration (EIA), gas demand grew substantially from 8.62 to 9.30 million b/d last week. The spike is higher than some market observers expected; the estimate could be revised when EIA releases final demand measurements for May. Meanwhile, total domestic gasoline stocks decreased by 3.2 million bbl to 219.7 million bbl. Higher demand and a reduction in stocks have slowed pump price decreases.
On May 15, the national average of $3.53 is thirteen cents less than a month ago and 94 cents less than a year ago.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI decreased by $1.15 to settle at $72.56. Oil prices declined last week amid ongoing market uncertainty regarding stalled U.S. debt ceiling negotiations. The market is concerned that if the debt limit is breached, it could contribute to the economy tipping into a recession. If a recession occurs, crude demand and prices would likely decline. Additionally, the EIA reported that total domestic commercial crude inventories increased by 3 million bbl to 462.6 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 – Nashville ($3.23), Cleveland ($3.19), Knoxville ($3.16)
Least expensive metro markets – Clarksville ($3.03), Johnson City ($3.09), Kingsport ($3.09)