AAA: TN gas prices fall seven cents

Published 2:15 pm Monday, October 2, 2023

FROM STAFF REPORTS
NASHVILLE – Tennessee motorists are experiencing a welcomed decline in gas prices for the second consecutive week. According to AAA – The Auto Club Group, the state’s gas prices have dropped by an average of seven cents over the past week. The current Tennessee Gas Price average stands at $3.30 per gallon. While this represents a decrease of 12 cents compared to last month, it remains 11 cents higher than the prices reported one year ago.
Megan Cooper, spokesperson for AAA – The Auto Club Group, shared her insights on the recent gas price trends. “Despite oil prices stubbornly staying elevated, pump prices have declined for the second consecutive week,” Cooper said. “With the summer driving season behind us, gasoline demand has declined as expected. Gasoline futures are also moving less expensive, which means it’s likely we’ll see another round of falling prices at the pump this week.”
Here are some quick facts about the current state of gas prices in Tennessee:
46% of gas stations in Tennessee are offering prices below $3.25 per gallon.
The lowest 10% of pump prices are at $3.05 for regular unleaded.
The highest 10% of pump prices are at $3.71 for regular unleaded.
Tennessee ranks as the third least expensive gas market in the nation.
On a national scale, the average gas price per gallon has only decreased by three cents since last week, reaching $3.81. The slow descent in national gas prices is attributed to the high cost of oil, which continues to act as a counterbalance to falling gas prices.
The Energy Information Administration (EIA) has reported that gas demand slightly increased from 8.41 to 8.62 million barrels per day last week, although it remains below last year’s rate of 8.83 million barrels per day during the same week in September 2022. Additionally, total domestic gasoline stocks have risen by 1 million barrels to reach 220.5 million barrels. This increase in supply, coupled with tepid demand, has contributed to lower gas prices. However, the fluctuating nature of oil prices has restrained the seasonal price decreases that are typically expected as the country enters the lower-demand fall driving season.
The current national average gas price of $3.81 per gallon remains unchanged from one month ago but is two cents higher than prices from a year ago.
In terms of national oil market dynamics, the closing of Wednesday’s formal trading session witnessed a $3.29 increase in WTI (West Texas Intermediate) crude oil, reaching $93.71 per barrel. This spike in oil prices is partly attributed to the EIA’s report indicating a 2.2 million barrel decrease in total commercial crude stocks to 416.3 million barrels last week. Market concerns regarding the ability of supply to meet demand for the remainder of 2023 could result in higher oil prices, thereby keeping pump prices elevated this fall.
Motorists in Tennessee and across the United States can track current gas prices along their route by using the AAA TripTik Travel planner.

Tennessee Regional Prices:
Most expensive metro markets: Jackson ($3.39), Memphis ($3.39), Johnson City ($3.34)
Least expensive metro markets: Chattanooga ($3.17), Cleveland ($3.25), Clarksville ($3.25)

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