Tennessee gas prices rise ahead of Independence Day

Published 3:37 pm Monday, July 1, 2024

NASHVILLE – Tennessee gas prices reversed course last week and rose 10 cents, on average. The Tennessee gas price average is now $3.10, which is the same as one month ago and two cents more than one year ago.

“Gas prices are proving to be volatile as we head into the Independence Day holiday, thanks to a recent rise in oil prices,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Even with gas prices moving more expensive, it’s not likely significant enough to impact Tennesseans’ travel plans. We have seen oil prices flatten out over the last week, which will hopefully limit any significant jumps at the pump in the coming days.”

National Gas Prices

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The national average shook off nearly three weeks of stagnation, moving a nickel higher since last week to hit $3.49. The move came as the cost of oil crossed the $80 per barrel mark, putting upward pressure on pump prices. With oil costs accounting for about 54% of what you pay at the pump, more expensive oil usually leads to more expensive gas.

According to new data from the Energy Information Administration (EIA), gas demand fell from 9.38 million b/d to 8.96 million b/d last week. This demand level is about 240,000 b/d below the same week of last year. Meanwhile, total domestic gasoline stocks rose from 231.2 to 233.9 million barrels. Low gasoline demand and increasing supply may help counter higher oil costs, slowing any rise in pump prices.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI rose seven cents to $80.90 a barrel, up from $78.50 two weeks earlier. The EIA reports that crude oil inventories increased by 3.6 million barrels from the previous week. At 460.7 million barrels, U.S. crude oil inventories are just 2% below the five-year average for this time of year.

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

Tennessee Regional Prices

Most expensive metro markets:

  • Nashville ($3.19)
  • Clarksville ($3.12)
  • Cleveland ($3.10)

Least expensive metro markets:

  • Knoxville ($3.01)
  • Morristown ($3.02)
  • Kingsport ($3.05)