AAA: TN gas prices rise three cents

Published 4:52 pm Tuesday, May 30, 2023

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Tennessee is the 7th least expensive market in the nation

NASHVILLE – Tennesseans that took a holiday road trip over the weekend were greeted with pump prices over a dollar cheaper than last year’s holiday. Gas prices, on average, only moved three cents higher over last week. The Tennessee Gas Price average is now $3.18 which is four cents less expensive than one month ago and $1.09 less than one year ago.
“After fluctuating in the weeks leading up to Memorial Day, pump prices ultimately landed at $1.09 per gallon cheaper than last year’s holiday,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “As we head into the summer driving season, it’s very likely this fluctuation will stick around. If overall market conditions remain similar to what we’re seeing now, it’s possible that the fluctuations we’ll see could be minimal.”
Quick Facts
* 12% of Tennessee gas stations have prices below $3.00
* The lowest 10% of pump prices are $2.94 for regular unleaded
* The highest 10% of pump prices are $3.51 for regular unleaded
* Tennessee is the 7th least expensive market in the nation
National Gas Prices
The seasonal surge in gasoline demand leading into the long holiday weekend resulted in the national average for a gallon of gas rising three cents since last week to $3.57. AAA forecasted that Memorial Day road trips will be up 6% over last year, with more than 37 million Americans driving to their destinations.
According to new data from the Energy Information Administration (EIA), gas demand increased from 8.91 to 9.43 million b/d last week. Rising demand has helped to boost pump prices. Meanwhile, total domestic gasoline stocks decreased by 2 million bbl to 216.3 million bbl. If gas demand grows amid tighter supplies, drivers will likely see pump prices rise.
Today’s national average of $3.57 is four cents less than a month ago and $1.04 less than a year ago.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI increased by $1.43 to settle at $74.34. Oil prices rose last week amid growing market optimism that energy demand is rebounding. However, price increases were capped due to the market also expecting another interest rate increase from the U.S. Federal Reserve, which could result in the economy tipping into a recession. If the economy enters a recession, oil demand and prices would likely decline. Additionally, the EIA reported that total domestic commercial crude inventories decreased significantly by 12.4 million bbl to 455.2 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 – Morristown ($3.24), Nashville ($3.22), Jackson ($3.18)
* Least expensive metro markets – Kingsport ($3.12), Chattanooga ($3.13), Clarksville ($3.13)

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