Tennessee gas prices drop as national averages hold steady

Published 4:48 pm Monday, January 27, 2025

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NASHVILLE Tennessee gas prices decreased by an average of four cents over the past week, bringing the state’s average price to $2.76 per gallon. While this marks an eight-cent increase compared to a month ago, it remains two cents cheaper than this time last year, according to AAA – The Auto Club Group.

“Pump prices moved in a much more favorable direction for drivers over last week,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Barring any major shifts in crude oil pricing, it’s likely that drivers will continue to see fluctuations in pump pricing. If crude oil prices hold steady at current levels, it’s possible that we could see those fluctuations continue in a better direction for drivers.”

National Gas Prices

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On the national level, gas prices remain steady at $3.12 per gallon, despite declining oil costs and weaker domestic gasoline demand. According to the Energy Information Administration (EIA), gasoline demand dropped from 8.32 million barrels per day (b/d) to 8.08 million b/d. Meanwhile, total domestic gasoline stocks rose from 243.6 million barrels to 245.9 million, while gasoline production averaged 9.2 million b/d last week.

On Monday, the national average price of $3.12 is nine cents higher than a month ago and two cents more than a year ago.

National Oil Market Dynamics

Crude oil prices also softened slightly, with West Texas Intermediate (WTI) settling at $75.44 a barrel after falling 39 cents during Wednesday’s trading session. U.S. crude oil inventories declined by 1 million barrels to 411.7 million barrels last week, which is 6% below the five-year average for this time of year, according to the EIA.

Tennessee Regional Prices

The most expensive metro markets in Tennessee are Johnson City ($2.88), Kingsport ($2.81), and Jackson ($2.81). The least expensive metro markets are Cleveland ($2.61), Clarksville ($2.66), and Chattanooga ($2.67).

Drivers are encouraged to monitor prices locally as fluctuations continue to impact fuel costs across the state.