AAA: TN gas prices fall four cents

Published 1:08 pm Monday, June 12, 2023

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Tennessee is the 5th least expensive market in the nation

NASHVILLE – One year ago today, Tennesseans were paying an average of $4.64 per gallon – the highest recorded average price for the state. Fortunately, the gas prices seen across the state today are nowhere near the record highs of last year. Over last week, Tennessee gas prices fell an average of four cents. The Tennessee Gas Price average is now $3.14 which is two cents less expensive than one month ago and $1.50 less than one year ago.
“We’re still seeing quite a bit of volatility in gas prices across the country, but thankfully for us here in Tennessee the fluctuations have been favorable for drivers,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Even though summer hasn’t officially begun, the driving season is off to a roaring start. Gasoline demand figures over the last few weeks have been stronger than what we saw at this same time last year. Despite increased demand, it’s likely that pump price increases could be held in check if the cost of crude oil remains low.”

Quick Facts
* 17% of Tennessee gas stations have prices below $3.00
* The lowest 10% of pump prices are $2.93 for regular unleaded
* The highest 10% of pump prices are $3.47 for regular unleaded
* Tennessee is the 5th least expensive market in the nation

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National Gas Prices
For the first time since 2021, domestic gasoline demand was over 9 million barrels daily for a third straight week. Yet despite the robust numbers, pump prices only moved slightly higher as the low cost of oil is countering a spike for now. The national average for a gallon of gas has risen four cents since last week to $3.59.
According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 9.1 to 9.22 million b/d last week. Meanwhile, total domestic gasoline stocks rose by 2.7 million bbl to 218.8 million bbl. Although gas demand increased, increasing stocks and fluctuating oil prices have contributed to limiting increases.
On June 12, the national average of $3.59 is five cents more than a month ago but $1.42 less than a year ago.

National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI increased by 79 cents to settle at $72.53. Oil prices rose last week amid market optimism that summer demand may be more robust than expected, pushing prices higher than expected. Price increases have been capped this week despite the announcement from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, known as OPEC+, that member nations would continue to keep their production reduction agreement from May 2023 in place through 2024, and Saudi Arabia approved an additional cut of 1 million b/d starting in July 2023. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 500,000 bbl to 459.2 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 – Nashville ($3.18), Jackson ($3.18), Memphis ($3.15)
* Least expensive metro markets – Chattanooga ($3.07), Kingsport ($3.07), Johnson City ($3.08)