Getting your Trinity Audio player ready...

NASHVILLE — Gas prices in Tennessee surged last week, with the state’s average pump price climbing by nine cents. The current Tennessee Gas Price average stands at $3.18 per gallon, marking a 24-cent increase from a month ago and a five-cent rise from last year.

Megan Cooper, spokeswoman for AAA – The Auto Club Group, emphasized the ongoing upward pressure on gas prices in the market. “With last week’s crude oil price hikes, Tennesseans should brace for another round of increases at the pump this week,” she stated. “It typically takes a week or two for adjustments from significant oil price gains to filter through the retail market.”

Here are some quick facts:

• Approximately 69% of Tennessee gas stations are selling fuel below $3.25 per gallon.
• The lowest 10% of pump prices are recorded at $2.95 for regular unleaded.
• Conversely, the highest 10% of pump prices are at $3.47 for regular unleaded.
• Tennessee ranks as the 7th least expensive market for gas in the nation.

National Gas Prices:

On the national front, the average price for a gallon of gas surged by seven cents since last week, reaching $3.53. Despite subdued domestic gas demand, rising oil prices contributed to the hike. Notably, the Midwest might experience relief in gas prices as the BP Whiting refinery in Indiana resumed operations after being offline since February 1.

According to the Energy Information Administration (EIA), gas demand experienced a slight dip from 9.04 to 8.81 million barrels per day (b/d) last week. However, total domestic gasoline stocks dwindled by 3.3 million barrels to 230.8 million barrels. Normally, reduced demand would lead to lower pump prices or slower increases, but escalating oil prices have resulted in the opposite effect.

The current national average of $3.53 represents a 27-cent increase from a month ago and a nine-cent uptick from last year.

National Oil Market Dynamics:

At the conclusion of Wednesday’s formal trading session, West Texas Intermediate (WTI) crude oil prices dropped by $1.79 to settle at $81.68. Last week, oil prices dipped following the US Federal Reserve’s decision to maintain unchanged interest rates, although it anticipates three rate cuts by the end of 2024. Additionally, the EIA reported a 2 million barrel decline in total domestic commercial crude stocks to 445 million barrels last week.

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

Tennessee Regional Prices:

The most expensive metro markets in Tennessee include Nashville ($3.25), Clarksville ($3.22), and Jackson ($3.22). Conversely, the least expensive metro markets are Morristown ($3.07), Knoxville ($3.08), and Kingsport ($3.16).