Gas prices drop five cents in Tennessee, state ranks 6th in affordability

Published 2:15 pm Monday, October 23, 2023

FROM STAFF REPORTS
NASHVILLE – In a welcome trend for Tennessee drivers, gas prices continued their downward slide last week, with an average decrease of five cents across the state. The Tennessee gas price average now stands at $3.09 per gallon, marking a 29-cent reduction from prices a month ago and a 23-cent decrease from the same time last year.
Megan Cooper, spokesperson for AAA – The Auto Club Group, commented on the sustained decline, stating, “This marks the fifth consecutive week of falling gas prices. The decline is attributed to a combination of factors, including the seasonal reduction in fuel demand, increased gasoline supplies, and the shift to more cost-effective winter blend gasoline. If oil prices remain stable in the coming week, there’s a likelihood that this trend will persist, resulting in further relief for drivers at the pump.”

Key Statistics:
Approximately 43% of gas stations in Tennessee currently offer fuel prices below $3 per gallon.
Among the lowest-priced options, the cheapest 10% of pump prices hover at $2.81 for regular unleaded, while the highest 10% reach $3.55 for the same grade.
Tennessee stands as the sixth most affordable state for gas prices in the nation.

National Gas Prices:
Despite global tensions affecting the oil market, the national average for a gallon of gas has sustained its autumnal decline, falling six cents over the past week to settle at $3.54. This brings total savings of 34 cents since gas prices peaked at $3.88 per gallon a month ago, equating to roughly $5 in savings every time drivers fill their tanks.
New data from the Energy Information Administration (EIA) reveals an increase in gas demand, rising from 8.58 to 8.94 million barrels per day last week. Conversely, total domestic gasoline stocks decreased by 2.4 million barrels, now standing at 223.3 million barrels. While increased demand and tightening supply often lead to higher prices, the steadiness of oil prices has had the opposite effect. If oil prices remain consistent or decrease, further reductions in gas prices can be expected in the weeks ahead.
On Monday, October 23, the national average of $3.54 is 31 cents lower than a month ago and 25 cents less than the same time last year.

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National Oil Market Dynamics:
In the most recent trading session, West Texas Intermediate (WTI) crude oil prices remained steady at $86.66 per barrel. Earlier in the week, concerns over the Israel-Hamas conflict had driven oil prices upward, fueled by worries of potential disruptions in oil output from the region. However, these concerns have since subsided as the conflict’s impact on broader Middle East oil supplies appears limited. Additionally, the EIA reported a 4.5 million barrel drop in total domestic commercial crude supply, bringing the current stock to 419.7 million barrels.
For updated gas prices along their route, drivers can utilize the AAA TripTik Travel planner.

Tennessee Regional Prices:
Most expensive metro markets: Jackson ($3.18), Morristown ($3.18), Memphis ($3.16).
Least expensive metro markets: Chattanooga ($2.95), Cleveland ($2.95), Clarksville ($2.96).
Tennessee’s drivers can find some relief at the pump as gas prices continue their downward trajectory, providing potential savings for motorists across the state.