AAA: Tennessee gas prices rise eight cents

Published 12:24 pm Monday, August 7, 2023

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Tennessee fell to the 6th least expensive market in the nation

NASHVILLE – Gas prices across Tennessee rose again for the third consecutive week, climbing eight cents, on average, over last week.The Tennessee Gas Price average is now $3.46 which is 36 cents more expensive than one month ago but 17 cents less than one year ago.
“We’re still experiencing quite a bit of volatility in pump prices across the state, however, we are starting to see signs of stabilization in our state gas price average. Overnight, the state gas price average fell a penny,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “We’re also seeing improvements in refinery operations allowing gasoline stocks to increase. Gasoline demand is also likely to decline as students head back to school, signaling the end of the busy summer driving season. Drivers should still expect to see fluctuations in pump prices this week, and barring any major shifts in market fundamentals, we could see gas prices across the state begin to normalize.”

Quick Facts
* 71% of Tennessee gas stations have prices below $3.50
* The lowest 10% of pump prices are $3.25 for regular unleaded
* The highest 10% of pump prices are $3.74 for regular unleaded
* Tennessee is the 6th least expensive market in the nation

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National Gas Prices
The national average for a gallon of gas has continued its summer U-turn, but price increases have slowed and more relief could be on the way. The national average increased by seven cents since last week to $3.82. Pump prices have primarily risen due to the price of oil, which was near $80 per barrel last week, but has since softened recently.
According to new data from the Energy Information Administration (EIA), gas demand decreased slightly from 8.94 to 8.84 million b/d last week. Meanwhile, total domestic gasoline stocks increased by 1.5 million bbl to 219.1 million bbl. Lower gas demand amid increasing supply will likely help to slow price increases in the days ahead.
On August 7, the national average of $3.82 is 29 cents more than a month ago but 24 cents less than a year ago.

National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI decreased by $1.88 to settle at $79.49. Oil prices tumbled last week after the U.S. credit rating declined, increasing market fears that oil demand could decline if the economy eases. If oil demand drops, prices would likely follow suit. Additionally, the EIA reported that total domestic, commercial crude inventories decreased by 17 million bbl to 439.8 million bbl.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.

Tennessee Regional Prices
* Most expensive metro markets – Nashville ($3.55), Cleveland ($3.54), Clarksville ($3.49)
* Least expensive metro markets – Knoxville ($3.36), Johnson City ($3.37), Morristown ($3.38)