AAA: TN gas prices fall three cents over Labor Day Weekend

Published 3:38 pm Tuesday, September 5, 2023

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Tennessee is now the 6th least expensive state in the country for gas prices
NASHVILLE – Tennesseans paid an average of $3.41 per gallon on Labor Day, which is the most expensive state gas price average for the holiday since 2012. The Tennessee Gas Price average is now $3.40 which is seven cents less expensive than one month ago and three cents more than one year ago.
“Tennessee gas prices have fallen nearly 10 cents over the course of the last two weeks,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Where pump prices are headed for the rest of the year is still unclear. For now, oil and gasoline futures are moving in opposite directions. Crude oil prices shifted higher over last week partly due to reports that Saudi Arabia will likely extend its production cuts through October, which could contribute to continued tightening in global oil supplies. For now, drivers should continue to expect volatility in the gas price market.”

Quick Facts
* 15% of Tennessee gas stations have prices below $3.25
* The lowest 10% of pump prices are $3.17 for regular unleaded
* The highest 10% of pump prices are $3.73 for regular unleaded
* Tennessee is the 6th least expensive market in the nation

National Gas Prices
According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 8.91 to 9.07 million b/d last week. Meanwhile, total domestic gasoline stocks took a slight step back to 217.4 million bbl. Although demand has increased, fluctuating oil prices have limited pump price increases.
On Tuesday, the national average of $3.81 is two cents less than a month ago but three cents more than a year ago.

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National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI increased by 47 cents to settle at $81.63. Additionally, the EIA reported that total domestic commercial crude inventories decreased significantly from 433.5 to 422.9 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 ($3.49), Jackson ($3.47), Memphis ($3.46)
* Least expensive metro markets – Johnson City ($3.31), Kingsport ($3.32), Knoxville ($3.32)