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NASHVILLE – Gas prices across Tennessee edged up by one cent over the past week, with the state’s average price for a gallon of regular unleaded now at $2.67, according to AAA – The Auto Club Group. This figure is nine cents lower than a month ago and 15 cents cheaper than this time last year.

“Last week, we saw our state gas price average jump four cents to $2.70, but by the end of the week, the state average had fallen three cents to $2.67,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Gas prices typically move lower through the winter months because of colder weather, lower demand, and gasoline supply gains. Barring any major changes in the market, it’s likely drivers can expect to see cheaper prices at the pump heading into the holiday season.”

National Gas Prices

The national average for a gallon of gas is now $3.01, a decline of three cents since last week. The national average has been hovering just above $3 for more than a month, marking the slowest decline in years. The last time the national average dropped below $3 was May 11, 2021.

New data from the Energy Information Administration (EIA) shows a slight increase in gasoline demand, which rose from 8.50 million barrels per day (b/d) to 8.73 million b/d. Meanwhile, total domestic gasoline stocks increased from 212.2 million barrels to 214.6 million barrels, although gasoline production fell to an average of 9.5 million barrels per day last week.

On Monday the national average is eight cents lower than a month ago and 15 cents lower than a year ago.

Regional Tennessee Prices

• Most Expensive Metro Markets:
  • Jackson: $2.75
  • Johnson City: $2.73
  • Memphis: $2.71
• Least Expensive Metro Markets:
  • Morristown: $2.60
  • Knoxville: $2.61
  • Chattanooga: $2.62

Oil Market Update

West Texas Intermediate (WTI) crude oil closed at $68.54 per barrel last Wednesday, reflecting a $1.40 drop. According to the EIA, U.S. crude oil inventories fell by 5.1 million barrels last week, leaving total inventories at 423.4 million barrels, about 5% below the five-year average for this time of year.

Drivers are encouraged to monitor local prices and take advantage of holiday-season deals at the pump as fuel prices are expected to remain relatively stable in the coming weeks.