Gas prices rise in Tennessee, state ranks 14th least expensive in nation

Published 2:10 pm Monday, January 29, 2024

FROM STAFF REPORTS
NASHVILLE – Gas prices in Tennessee saw an uptick last week, climbing by eight cents on average, positioning the state as the 14th least expensive market in the nation, according to AAA – The Auto Club Group.
The current Tennessee Gas Price average stands at $2.79, reflecting a two-cent increase compared to last month but a notable 49-cent decrease from prices recorded one year ago.
Megan Cooper, spokeswoman for AAA – The Auto Club Group, attributed the rise in gas prices to steady increases in crude oil pricing. She highlighted additional factors such as heightened geopolitical tensions and the residual effects of cold temperatures on refinery production, adding pressure to pump prices. Cooper warned that if crude oil prices persist at elevated levels, drivers should anticipate further fluctuations in pump prices in the coming week.
Key statistics regarding Tennessee gas prices include:
39% of Tennessee gas stations offer prices below $2.75.
The lowest 10% of pump prices hover around $2.56 for regular unleaded.
The highest 10% of pump prices reach $3.10 for regular unleaded.
Nationally, the average gas price increased by three cents since the previous week, reaching $3.10. This slight rise is attributed to low gas demand offset by slightly higher oil costs, resulting in a neutral pump price trend.
Recent data from the Energy Information Administration (EIA) indicates a dip in gas demand from 8.27 to 7.89 million b/d, coupled with a 4.9 million bbl increase in total domestic gasoline stocks, totaling 253 million bbl. With fluctuating oil prices, decreased gas demand, and rising stocks, pump price hikes have been restrained. However, if oil prices continue to rise, drivers may witness steady increases in pump prices in the weeks ahead.
On the national oil market front, the price of West Texas Intermediate (WTI) rose by 72 cents to settle at $75.09 by Wednesday’s trading session close. This increase follows a significant decrease in total domestic commercial crude stocks, which fell by 9.2 million bbl to 420.7 million bbl, signaling potential price escalation due to tight supply if demand surges.
Motorists seeking current gas prices along their route can utilize the AAA TripTik Travel planner.
Regional price differentials in Tennessee highlight Johnson City ($2.89), Memphis ($2.85), and Jackson ($2.82) as the most expensive metro markets, while Knoxville ($2.75), Chattanooga ($2.75), and Morristown ($2.78) emerge as the least expensive options.

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