(MURFREESBORO) For the first time in four weeks, gas prices across the state held steady instead of increasing. Gas prices in Tennessee, on average, are the same as last week. The Tennessee Gas Price average is now $2.23 which is nearly 12 cents more than one month ago and nearly four cents more than one year ago.
Here in Murfreesboro, some discounters are selling regular gas at $2.06 per gallon.
AAA spokesperson Megan Cooper said, “Even though gas prices held steady across the state this week, it's likely that Tennesseans can expect to pay more at the pump this month. Crude oil prices jumped $4 per barrel over last week and are the most expensive that we've seen since January 2020. It typically takes a few weeks to see the impact at the pump from changes in crude oil pricing, but given that crude accounts for more than 50% of retail price, it's very likely that we will see pump prices begin to trickle upward in response.”
Quick Facts
- 57% of Tennessee gas stations have prices below $2.25
- The lowest 10% of pump prices are $2.05 for regular unleaded
- The highest 10% of pump prices are $2.48 for regular unleaded
- Tennessee remains the 10th least expensive market in the nation
National Gas Prices
At $2.46, the national gas price average is more expensive on the week (+4 cents), the month (+16 cents) and the year (+2 cents). This past Saturday, February 6, was the first time in 340 days the national average was more expensive than a year ago. Today, nearly two-thirds of all state gas price averages are more expensive year-over-year. Pump prices continue to climb, in part due to expensive crude oil and the market’s growing optimism that demand will increase amid the vaccination roll-out.
Up to $56/bbl, crude oil increased last week following Organization of the Petroleum Exporting Countries’ (OPEC) decision to keep their production cuts unchanged—a decision influenced by the ongoing impact of the pandemic on gasoline demand. Crude has not been priced this high since January 2020. Typically, it can take a few weeks before pump prices see the impact of more expensive crude, and with crude accounting for more than 50% of the retail price, increases are no doubt going to continue.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by 62 cents to settle at $56.85. Crude prices rose last week after OPEC and its production reduction agreement partners met to review compliance with their agreement to collectively reduce crude production by 7.2 million b/d. The group decided to hold the cuts steady and expects output to remain low this year since demand is forecasted to be lower than expected in 2021, due to ongoing crude demand concerns as the pandemic continues. Crude prices were also bolstered by the Energy Information Administration’s (EIA) latest report showing that total domestic crude inventories dropped by 1 million bbl to 475.7 million bbl. For this week, crude prices may continue to climb if the next weekly EIA report shows another reduction in total domestic crude inventories.
Tennessee Regional Prices
Most expensive metro markets – Morristown ($2.26), Memphis ($ 2.26), Jackson ($2.26)
Least expensive metro markets – Murfreesboro ($2.06), Chattanooga ($2.12), Cleveland ($2.14), Clarksville ($2.19)
