Tennessee gas prices surge by 6 cents, breaching $3 mark after four months

Published 2:07 pm Monday, March 4, 2024

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NASHVILLE — Tennessee’s gasoline prices surged by six cents on average last week, marking the first time the state has seen prices above $3 per gallon since November 2023. The current Tennessee gas price average stands at $3.01, reflecting a 16-cent increase compared to last month but remaining four cents cheaper than a year ago.

Megan Cooper, spokeswoman for AAA – The Auto Club Group, commented on the recent price hike, noting, “Tennessee drivers are now seeing gas prices above $3 per gallon for the first time since November, and it’s very likely the trend of fluctuating prices will continue.” Cooper attributed the rise in prices to an increase in gasoline futures and the extension of voluntary oil production cuts by OPEC and its allies until the end of June.

Key Points:

  • 66% of Tennessee gas stations have prices below $3.
  • The lowest 10% of pump prices for regular unleaded are $2.80, while the highest 10% are $3.31.
  • Tennessee ranks as the 10th least expensive market in the nation.

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National Gas Prices:

The national average for a gallon of gas is $3.35, marking a 9-cent increase from one week ago. The upward trend is expected to continue as travelers embark on Spring Break journeys.

Energy Information Administration (EIA) data indicates a rise in gas demand from 8.2 to 8.47 million b/d last week, coupled with a 2.8 million bbl decline in total domestic gasoline stocks to 244.2 million bbl. These factors have contributed to the increase in pump prices.

On March 4, the national average of $3.35 reflects a 21-cent increase compared to a month ago but remains 4 cents lower than a year ago when the national average was $3.39.

National Oil Market Dynamics:

At the close of Wednesday’s trading session, WTI settled at $78.54, decreasing by 33 cents. Oil prices fell following the EIA’s report showing a 4.2 million bbl increase in total domestic commercial crude stocks to 447.2 million bbl last week, signaling a potential loosening of crude demand.

Motorists can track current gas prices using the AAA TripTik Travel planner.

Tennessee Regional Prices:

  • Most expensive metro markets: Johnson City ($3.08), Clarksville ($3.05), Nashville ($3.05).
  • Least expensive metro markets: Morristown ($2.92), Knoxville ($2.94), Chattanooga ($2.96).