Tennessee gas prices drop six cents, remain nation’s sixth cheapest

Published 9:07 am Tuesday, September 26, 2023

FROM STAFF REPORTS
NASHVILLE — Gas prices in Tennessee have resumed their downward trajectory, offering relief to motorists in the state. The latest data indicates a six-cent decrease in the average gas price over the past week, bringing Tennessee’s gas price average to $3.37. While this reflects a seven-cent drop from the previous month, it remains 19 cents higher than the rates observed a year ago.
Megan Cooper, spokesperson for AAA – The Auto Club Group, explained the situation, stating, “The decline in gas prices during this period is a common trend, as the conclusion of the summer driving season typically results in decreased gasoline demand. However, this year, the gradual seasonal price decline is hampered by elevated oil costs, persisting at around $90 per barrel.”

Key Details:
Approximately 22% of gas stations in Tennessee have prices below $3.25.
Among pump prices, the lowest 10% are offering regular unleaded at $3.13, while the highest 10% charge $3.73.
Tennessee maintains its status as the sixth least expensive gas market in the nation.

National Gas Prices:
The national average for a gallon of gas had seemingly reached its peak for 2023 at $3.88 last week, but prices subsequently slid by a few cents over the course of the week. The most recent average stands at $3.84, marking a four-cent reduction from the prior week.
According to recent data from the Energy Information Administration (EIA), gas demand in the United States witnessed a slight uptick, rising from 8.31 to 8.41 million barrels per day (b/d) in the last week. Simultaneously, total domestic gasoline stocks slightly decreased from 220.3 to 219.5 million barrels. The interplay of increased gas demand and tighter supply has contributed to higher pump prices. Nonetheless, the sustained high price of oil, above $90 per barrel, remains the predominant factor influencing the rising costs faced by drivers.
The present national average of $3.84 reflects a two-cent increase compared to the previous month and a 13-cent uptick from last year.

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National Oil Market Dynamics:
In the final trading session on Wednesday, West Texas Intermediate (WTI) crude oil saw a decrease of 92 cents, settling at $90.28. Oil prices dropped last week, primarily due to lingering market concerns that any future interest rate hikes might push the U.S. economy into a recession. In addition, prices fell despite the EIA reporting a 2.1 million barrel decrease in total commercial crude stocks, bringing the figure to 418.5 million barrels last week.
Motorists seeking real-time gas prices along their routes can utilize the AAA TripTik Travel planner.

Tennessee Regional Prices:
Among the metro markets in Tennessee, the most expensive locations for gas are Nashville, Jackson, and Memphis, where prices stand at $3.43. In contrast, the least expensive markets are Chattanooga, Knoxville, and Morristown, offering gas at $3.30, $3.31, and $3.34, respectively.