Gas prices in Tennessee continue to decline for fourth consecutive week
Published 2:26 pm Monday, October 16, 2023
NASHVILLE — Tennessee residents are enjoying some relief at the pump as gas prices in the state have now fallen for four consecutive weeks. Over the past week, the average price of gas in Tennessee dropped by ten cents, further alleviating the financial burden on motorists. The current Tennessee gas price average stands at $3.14 per gallon, marking a substantial 30-cent decrease from the prices recorded just one month ago. Comparatively, it’s also 24 cents cheaper than prices from the same time last year.
Megan Cooper, spokeswoman for AAA – The Auto Club Group, attributed the ongoing decline in gas prices to the drop in crude oil prices. She stated, “We’re continuing to see prices at the pump drop here in Tennessee, mostly thanks to falling crude oil prices.” She further noted that Clarksville is the sole metro area in Tennessee with a gas price average just below $3 per gallon. Cooper suggested that, if current market conditions persist, more metro areas might follow suit with their gas price averages.
- Approximately 80% of gas stations in Tennessee are offering prices below $3.25.
- In the state, the lowest 10% of pump prices stand at $2.85 for regular unleaded, while the highest 10% of pump prices are $3.58 for regular unleaded.
- Tennessee currently ranks as the 8th least expensive gas market in the nation.
National Gas Prices
Despite recent turmoil in the oil market following the Hamas attack on Israel, domestic gas prices have continued their gradual decline. Last week, oil prices briefly surged by a few dollars per barrel but failed to reach the levels seen during the Russian invasion of Ukraine last year when prices spiked by around $40 per barrel. This disparity can be attributed to Russia’s significant oil production capacity, whereas Israel and the Palestinian territories do not contribute substantially to global oil supplies. As of now, the national average for a gallon of gas has decreased by 10 cents from last week, standing at $3.60.
Data from the Energy Information Administration (EIA) indicates an increase in gas demand from 8.01 to 8.58 million b/d in the past week. However, total domestic gasoline stocks declined by 1.3 million barrels to reach 225.7 million barrels. With demand remaining tepid and oil prices on the decline, motorists can anticipate further price drops at the pump in the weeks ahead.
The current national average of $3.60 is notably 27 cents less than prices recorded a month ago and 28 cents less than the figures from a year ago.
National Oil Market Dynamics
As of the last trading session on Wednesday, WTI (West Texas Intermediate) crude oil prices fell by $2.48 to close at $83.49. While oil prices initially rose following the Hamas attack on Israel, ongoing concerns about demand have caused them to drop once more. If the market heads towards a recession, both oil prices and demand are expected to decline. Additionally, the EIA reported a significant increase of 10.1 million barrels in total commercial crude stocks, which now stand at 424.2 million barrels.
For up-to-date gas prices along your route, drivers can use the AAA TripTik Travel planner.
Tennessee Regional Prices
Most expensive metro markets for gas in Tennessee include Jackson ($3.23), Morristown ($3.22), and Memphis ($3.20). In contrast, the least expensive metro markets feature Clarksville ($2.99), Cleveland ($3.03), and Chattanooga ($3.03).