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NASHVILLE – Tennessee gas prices fell five cents last week, with the average price now at $3.06 per gallon. This decrease places Tennessee as the third least expensive state for gas in the nation. The current average is five cents lower than it was a month ago and 32 cents less than one year ago.

“We saw another drop in oil prices last week, and there are emerging concerns about softening global fuel demand,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “If market conditions remain unchanged, we might see another price break at the pump this week. The good news is that Tennessee continues to have some of the cheapest gas prices in the country.”

National Gas Prices

The national average for a gallon of gas remained steady at $3.50 last week. This price has not fluctuated significantly since June 26.

Data from the Energy Information Administration (EIA) shows that gas demand unexpectedly increased from 8.78 million barrels per day to 9.45 million barrels last week. At the same time, total domestic gasoline stocks declined from 233 million barrels to 227.4 million barrels. Gasoline production increased to an average of 10.2 million barrels per day. Despite rising demand, lower oil costs may help keep pump prices stable for now.

On July 29, the national average stands at $3.50, up by a penny from last month but 24 cents lower than a year ago.

National Oil Market Dynamics

On Wednesday, West Texas Intermediate (WTI) crude oil prices rose by 63 cents to $77.59 per barrel. The EIA reports a decrease in crude oil inventories by 3.7 million barrels from the previous week. U.S. crude oil inventories are currently about 5% below the five-year average for this time of year.

Drivers can check current gas prices along their routes using the AAA TripTik Travel planner.

Tennessee Regional Prices

• Most expensive metro markets: Jackson ($3.15), Nashville ($3.10), Memphis ($3.08)
• Least expensive metro markets: Chattanooga ($2.97), Clarksville ($2.98), Morristown ($3.01)