AAA: TN gas prices fall four cents

Published 12:55 pm Monday, July 3, 2023

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Tennessee is the third least expensive market in the nation
NASHVILLE – Tennessee gas prices fell another four cents, on average, ahead of the Fourth of July holiday. The Tennessee Gas Price average is now $3.07 which is 12 cents less expensive than one month ago and $1.36 less than one year ago.
Tennessee gas prices averaged $4.42 per gallon on July 4, 2022 – a record high for the holiday. Today’s state average of $3.07 is $1.35 less expensive than what drivers were paying for last year’s holiday.
“Gas prices are continuing to trend less expensive, which was welcome news for those traveling for the Fourth of July,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Barring any major changes in the crude oil market, it’s likely that gas prices will continue to decline through the end of the week.”
Visit the Tennessee AAA Newsroom to view the full 2023 Independence Day holiday travel forecast.

Quick Facts
* 49% of Tennessee gas stations have prices below $3.00
* The lowest 10% of pump prices are $2.84 for regular unleaded
* The highest 10% of pump prices are $3.46 for regular unleaded
* Tennessee is the third least expensive market in the nation

National Gas Prices
Drivers hitting the road for the Fourth of July holiday will find the gift of lower gas prices across most of the country. AAA forecasts that more than 50 million people will celebrate the nation’s birthday by traveling, with a record 43.2 million going by car. The national average for a gallon of gas fell four cents since last week to $3.53.
According to new data from the Energy Information Administration (EIA), gas demand decreased slightly from 9.38 to 9.31 million b/d last week. Meanwhile, total domestic gasoline stocks increased by 600,000 bbl to 220 million bbl. Lower gas demand amid increasing supply has helped to limit pump price increases. If demand remains low, pump prices will likely continue to decline through the week.
On July 3, the national average of $3.53 is two cents less than a month ago but $1.28 less than a year ago.

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National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI increased by $1.86 to settle at $69.56. Oil prices increased last week due to market concerns after the EIA reported that total domestic commercial crude inventories decreased significantly by 9.6 million bbl to 453.7 million bbl last week, signaling that demand may be more robust than anticipated this summer. However, price increases have been capped since the market continues to worry that a recession could occur this year due to rising interest rates. If a recession occurs, oil demand and prices will likely decline.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.

Tennessee Regional Prices
* Most expensive metro markets – Jackson ($3.13), Memphis ($3.13), Nashville ($3.11)
* Least expensive metro markets – Clarksville ($2.98), Chattanooga ($3.01), Kingsport ($3.01)