Thank Goodness--Gas Prices Drop 2nd Week In A Row

(NASHVILLE) For the second week in a row, gas prices across Tennessee have moved less expensive. On average, gas prices across the state fell seven cents over last week. The Tennessee Gas Price average is now $3.30 which is 12 cents less expensive than one month ago but 11 cents more than one year ago.  

"Despite oil prices stubbornly staying elevated, pump prices have declined for the second consecutive week," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "With the summer driving season behind us, gasoline demand has declined as expected. Gasoline futures are also moving less expensive, which means it's likely we'll see another round of falling prices at the pump this week."

Quick Facts

• 46% of Tennessee gas stations have prices below $3.25 
• The lowest 10% of pump prices are $3.05 for regular unleaded 
• The highest 10% of pump prices are $3.71 for regular unleaded
• Tennessee is the third least expensive market in the nation

National Gas Prices

Despite tepid demand with fewer drivers visiting the pump, the national average for a gallon of gas only fell three cents since last week to reach $3.81. The slow descent is due to the high cost of oil, which is acting like a drogue chute on falling gas prices.     

According to new data from the Energy Information Administration (EIA), gas demand rose slightly from 8.41 to 8.62 million b/d last week; however, it is below last year’s rate of 8.83 million b/d during the same week in September 2022. Meanwhile, total domestic gasoline stocks increased by 1 million bbl to 220.5 million bbl. Growing supply, amid tepid demand, has pushed prices lower. Still, fluctuating oil prices have limited seasonal price decreases typically seen as the country settles into the lower-demand fall driving season. 

Today’s national average of $3.81 is the same as one month ago but two cents more than a year ago.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI increased by $3.29 to settle at $93.71. Oil prices increased sharply last week after the EIA reported that total commercial crude stocks decreased by 2.2 million bbl to 416.3 million bbl last week. The market is concerned that tight supply may not be robust enough to meet demand for the remainder of 2023. As a result, the price of oil could climb higher and keep pump prices elevated this fall.

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

Tennessee Regional Prices 

• Most expensive metro markets - Jackson ($3.39), Memphis ($3.39), Johnson City ($3.34) 
• Least expensive metro markets - Chattanooga ($3.17), Cleveland ($3.25), Clarksville ($3.25)

Tennessee Gas Price Averages 

(Price per gallon of regular unleaded gasoline)