Gas prices in Tennessee inch upward; national average climbs to $3.39

Published 1:57 pm Monday, March 11, 2024

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NASHVILLE — Gas prices in Tennessee continue their upward trend, rising six cents on average compared to last week. The Tennessee Gas Price average now stands at $3.07, reflecting a 22-cent increase from one month ago but remaining eight cents cheaper than this time last year.

“Tennessee drivers experienced a mid-week surge in pump prices, peaking at $3.09, before a slight decrease over the weekend to settle at $3.07,” stated Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Strong gasoline demand, coupled with the transition from winter to summer blend gasoline, is contributing to the rise in pump prices, a typical trend during this season. Despite the recent increase, Tennessee currently boasts the 6th least expensive state gas price average in the country.”

Here are some quick facts:

  • 37% of Tennessee gas stations offer prices below $3.00.
  • The lowest 10% of pump prices are recorded at $2.83 for regular unleaded.
  • The highest 10% of pump prices stand at $3.35 for regular unleaded.
  • Tennessee ranks as the 6th least expensive gas market nationwide.

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National Gas Prices

National pump prices have steadily risen by four cents since last week, reaching $3.39. The increase is likely attributed to higher oil prices, with crude oil accounting for nearly 60% of pump prices. The cost per barrel of oil is approaching $80, marking a $10 increase per barrel compared to recent months.

Recent data from the Energy Information Administration (EIA) indicates a surge in gas demand, rising from 8.47 to 9.01 million b/d last week. Concurrently, total domestic gasoline stocks tightened by 4.5 million bbl to 239.7 million bbl. This combination of growing gas demand and tighter supply dynamics has pushed pump prices higher.

The current national average of $3.39 reflects a 21-cent increase from a month ago but remains eight cents lower than the previous year.

National Oil Market Dynamics

At the close of Wednesday’s trading session, WTI (West Texas Intermediate) crude oil prices rose by 98 cents to settle at $79.13 per barrel. Last week, oil prices surged amidst increased market optimism following U.S. Federal Reserve Chair Jerome Powell’s remarks on expected future interest rate cuts. Additionally, the EIA reported a 1.3 million bbl increase in total domestic commercial crude stocks to 448.5 million bbl last week. Earlier in the week, OPEC+ extended their production reduction agreement by 2.2 million barrels per day into the second quarter of 2024.

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

Tennessee Regional Prices

The most expensive metro markets in Tennessee include Johnson City ($3.15), Clarksville ($3.12), and Nashville ($3.11). Conversely, the least expensive metro markets are Morristown ($2.92), Chattanooga ($3.00), and Knoxville ($3.04).