AAA: TN gas prices down five cents

Published 4:25 pm Monday, January 8, 2024

Tennessee remains the 9th least expensive market in the nation

NASHVILLE – Tennessee drivers saw another week of falling prices at the gas pump. Over last week, gas prices fell five cents, on average. The Tennessee Gas Price average is now $2.70 which is 14 cents less expensive than one month ago and 28 cents less than one year ago.
“Strong refinery activity and seasonally low demand are helping to keep gas prices low for now,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Oil prices rose slightly last week over concerns of the possibility of widening conflict in the Middle East. If crude oil prices continue to trend higher this week, it’s likely we could start to see some volatility in our pump prices.”
Quick Facts
70% of Tennessee gas stations have prices below $2.75
The lowest 10% of pump prices are $2.44 for regular unleaded
The highest 10% of pump prices are $3.10 for regular unleaded
Tennessee remains the 9th least expensive market in the nation
National Gas Prices
The national average for a gallon of gas dipped slightly by four cents since last week to $3.07. One reason could be lower demand, as fewer people are fueling up after the peak of holiday road travel.
According to new data from the Energy Information Administration (EIA), gas demand nosedived from 9.17 to 7.95 million b/d last week. Meanwhile, total domestic gasoline stocks increased substantially by 10.9 million bbl to 237 million bbl. Weak gas demand, alongside increased supply, has pushed pump prices lower. However, rising oil prices have limited price decreases. If gas demand remains weak, drivers will likely continue to see pump prices trickle downward.
Today’s national average of $3.07 is 11 cents less than a month ago and 21 cents less than a year ago.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI increased by $2.32 to settle at $72.70. Oil prices increased last week amid heightened tensions in the Middle East. Shipping disruptions in the Red Sea and the potential for tighter sanctions on Iran have led to market concerns that the oil supply could tighten and transportation costs could rise. Additionally, the EIA reported that total domestic commercial crude inventories declined by 5.5 million bbl to 431.1 million bbl last week.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Tennessee Regional Prices
Most expensive metro markets – Jackson ($2.85), Memphis ($2.80), Morristown ($2.69)
Least expensive metro markets – Chattanooga ($2.58), Clarksville ($2.65), Cleveland ($2.67)

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