Gas prices surge across Tennessee, hover near $3 mark

Published 2:06 pm Monday, February 19, 2024

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NASHVILLE — Last week, the upward trajectory of gas prices gained momentum, surging by 11 cents on average across Tennessee. The state’s Gas Price average now stands at $2.97, marking a 26-cent increase compared to one month ago but a 14-cent decrease from the same period last year.
Megan Cooper, spokeswoman for AAA – The Auto Club Group, noted, “Tennessee drivers likely felt the pain at the pump last week as we saw a pretty significant increase in our state average.” Cooper added, “This trend, however, isn’t unique to Tennessee. Even with a significant jump in our pump prices, there were still 16 states that saw bigger increases in their state average compared to last week.”
“Last week, pump prices rose to just a penny shy of $3.00 per gallon, on average, before dropping two cents to today’s average of $2.97,” continued Cooper. “If pump prices rise above $3.00 per gallon this week, it will be the first time the Tennessee state average has reached this benchmark since early November 2023.”
Quick Facts:
76% of Tennessee gas stations have prices below $3.00.
The lowest 10% of pump prices are $2.79 for regular unleaded.
The highest 10% of pump prices are $3.21 for regular unleaded.
Tennessee ranks as the 15th least expensive market in the nation.
National Gas Prices:
The national average for pump prices surged eight cents since last week to $3.27. A significant contributor to this increase is the shutdown at the large BP-Whiting refinery in Indiana, which has been offline for more than two weeks due to a power outage. The refinery processes 435,000 barrels of crude per day, and the shutdown has caused prices throughout the Midwest to climb, pushing the national average higher as well.
According to new data from the Energy Information Administration (EIA), gas demand decreased from 8.81 to 8.17 million b/d last week. Total domestic gasoline stocks declined by 3.7 million bbl to 247.3 million bbl. Lower gas demand would typically push pump prices down, but fluctuating oil prices and tight gas supply increase prices.
On Feb. 19, the national average of $3.27 is 19 cents more than a month ago but 14 cents less than a year ago.
National Oil Market Dynamics:
At the close of Wednesday’s formal trading session, WTI decreased by $1.23 to settle at $76.64. Oil prices dropped last week after the EIA reported that total domestic commercial crude stocks increased significantly by 12 million bbl to 439.4 million bbl last week. The sharp increase in supply signals that oil demand could be loosening, which may also put downward pressure on prices.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Tennessee Regional Prices:
Most expensive metro markets – Clarksville ($3.02), Jackson ($3.01), Cleveland ($3.01).
Least expensive metro markets – Morristown ($2.86), Knoxville ($2.88), Chattanooga ($2.95).

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