AAA: TN gas prices fall a penny
Published 3:05 pm Monday, July 17, 2023
Tennessee is now the 2nd least expensive market in the nation for gas prices
NASHVILLE – Gas prices across the state held relatively steady over last week, moving only a penny less expensive. The Tennessee Gas Price average is now $3.09 which is seven cents less expensive than one month ago and $1.03 less than one year ago.
“While gas prices in Tennessee held steady over the past week, Tennessee made big moves in the market and is now the second least expensive state in the country for gas prices,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Right now we’re seeing a lot of fluctuation in pricing across the country, and that’s likely to continue through this week. Even though we’re experiencing lighter demand than we were during the July 4th holiday, we’re also seeing crude oil prices creep higher. If oil prices continue to rise, it’s likely that pump prices will follow suit.”
* 40% of Tennessee gas stations have prices below $3.00
* The lowest 10% of pump prices are $2.88 for regular unleaded
* The highest 10% of pump prices are $3.47 for regular unleaded
* Tennessee is the 2nd least expensive market in the nation
National Gas Prices
Despite a notable cratering in gas demand in the days since the July 4th holiday, pump prices crept higher over the past week by two cents to reach $3.56. The main culprit is a higher price for oil, which moved from the upper $60s per barrel recently to the mid-$70s.
According to new data from the Energy Information Administration (EIA), gas demand decreased significantly from 9.6 to 8.76 million b/d last week. Meanwhile, total domestic gasoline stocks stayed flat at 219.5 million bbl. Although lower gas demand typically pushes pump prices lower, rising oil prices have lifted them. If oil prices continue to rise, pump prices will likely follow suit.
On July 17, the national average of $3.56 is a penny less than a month ago and 97 cents less than a year ago.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI increased by 92 cents to settle at $75.75. Oil prices increased last week due to rising market optimism that fewer interest rate hikes may be on the horizon. This follows the release of the U.S. Consumer Price Index (CPI) report, which saw a smaller-than-expected increase in June. Before the release of the CPI report, the market had been concerned that more interest rate increases could 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 increased by 5.9 million bbl to 458.1 million bbl.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.