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NASHVILLE – Tennessee motorists are experiencing a welcome drop in gas prices as they fell by an average of eight cents over the past week. The state’s gas price average now stands at $3.02, marking a 26-cent decrease compared to both one month and one year ago.
According to Megan Cooper, spokeswoman for AAA – The Auto Club Group, “Thanks to a drop in crude oil prices, the seasonal decline in driving demand, and strengthening gasoline supplies, Tennesseans are getting quite a bit of a break at the pump this week. It’s likely that drivers will see the state gas price average fall below $3 per gallon this week. It’s also likely that these lower prices could stay through the holidays, unless oil prices suddenly spike, or there’s an unexpected disruption to fuel supplies.”
Key Highlights:
63% of Tennessee gas stations offer prices below $3.00
The lowest 10% of pump prices are $2.74 for regular unleaded
The highest 10% of pump prices are $3.49 for regular unleaded
Tennessee ranks as the ninth least expensive market in the nation
National Gas Prices:
The national average for a gallon of gas has decreased by eight cents since last week, reaching $3.41. The reduction can be attributed to stable demand at the pump and reduced oil costs.
Data from the Energy Information Administration (EIA) reveals a slight decline in gas demand from 8.86 to 8.7 million b/d last week, coupled with unchanged domestic gasoline stocks at 223.5 million bbl. Lower gas demand, combined with falling oil prices, has contributed to the decline in pump prices.
The current national average of $3.41 is 33 cents less than a month ago and 39 cents less than a year ago.
National Oil Market Dynamics:
At the end of the Wednesday trading session, WTI (West Texas Intermediate) dropped by 58 cents to settle at $80.44. Falling oil prices are attributed to a stronger U.S. dollar following the Federal Reserve’s decision to postpone another interest rate increase. Additionally, the EIA reported an 800,000 bbl increase in total domestic commercial crude inventories to 421.9 million bbl last week.
Motorists can access real-time gas prices along their travel route using the AAA TripTik Travel planner.
Tennessee Regional Prices:
Most expensive metro markets: Jackson ($3.09), Morristown ($3.08), Nashville ($3.07)
Least expensive metro markets: Chattanooga ($2.87), Cleveland ($2.93), Clarksville ($2.96)