Gas prices in Tennessee experience slight dip, averaging $2.95 per gallon

Published 1:18 pm Monday, February 26, 2024

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NASHVILLE — Tennessee’s gasoline prices are showing signs of relief after a recent double-digit surge two weeks ago. In the past week, the state witnessed a modest decline of two cents in gas prices on average. The current Tennessee Gas Price average stands at $2.95 per gallon, reflecting a 17-cent increase compared to a month ago but a seven-cent decrease from the prices recorded one year ago.

Megan Cooper, spokeswoman for AAA – The Auto Club Group, remarked, “Tennesseans experienced a slight decrease in gas prices over the past week, offering a welcome respite for drivers. However, amidst refinery maintenance season and increasing fuel demand with the onset of spring driving, fluctuations in gas prices should be anticipated.”

Quick Facts:

  • 77% of Tennessee gas stations are offering prices below $3.00 per gallon.
  • The lowest 10% of pump prices stand at $2.74 for regular unleaded.
  • The highest 10% of pump prices reach $3.32 for regular unleaded.
  • Tennessee now ranks as the 9th least expensive market for gasoline in the nation.

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National Gas Prices:

Following a sudden spike of over ten cents two weeks ago, the national average for a gallon of gas experienced a modest decline, dropping by a penny to $3.26. The impending reopening of the large BP-Whiting refinery in Indiana, which has been offline since early February due to power issues, contributed to alleviating concerns about pump prices. The refinery, processing nearly 440,000 barrels of crude daily, experienced its shutdown, leading to increased gasoline prices across the Midwest.

Recent data from the Energy Information Administration (EIA) indicates that gas demand remained relatively stable at 8.2 million b/d last week, while total domestic gasoline stocks saw a slight decline of 300,000 bbl to 247 million bbl. This combination of flat demand and declining supply helped stabilize the national average this week.

The current national average of $3.26 represents a 16-cent increase from a month ago but a 10-cent decrease compared to prices recorded one year ago.

National Oil Market Dynamics:

In Wednesday’s formal trading session closure, WTI (West Texas Intermediate) prices rose by 87 cents to settle at $77.91. The recent uptick in oil prices is attributed to a softer dollar and ongoing hostilities in the Red Sea, raising concerns about potential hindrances to shipping routes. Additionally, total domestic commercial crude stocks saw an increase of 3.6 million bbl to 443 million bbl last week.

Motorists can access current gas prices along their route using the AAA TripTik Travel planner.

Tennessee Regional Prices:

  • Most expensive metro markets: Clarksville ($3.02), Johnson City ($3.00), Memphis ($2.99)
  • Least expensive metro markets: Morristown ($2.88), Cleveland ($2.89), Chattanooga ($2.90)