Tennessee gas prices have dropped to the lowest prices that we've seen so far in 2023. Over last week, gas prices across the state fell five cents, on average. The Tennessee Gas Price average is now $2.75 which is 19 cents less expensive than one month ago and a penny less than one year ago.
On Monday evening, gas prices in Rutherford County were sitting at an average price of $2.67 per gallon. South of Murfreesboro in Bedford County, the average price of regular unleaded is $2.74 per gallon. West of Rutherford County in the Brentwood / Franklin area, prices were once again the highest in the state. The average price of fuel in Williamson County is $3.30 per gallon.
"Tennessee pump prices are falling at the perfect time, as more than 2.5 million Tennesseans prepare to take a road trip for the year-end holidays," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "Right now, over half of Tennessee gas stations have prices below $2.75 per gallon. Strong domestic gasoline supplies and low oil prices have contributed to the downward pressure on prices at the pump. Oil prices regained some strength last week, so a modest increase is possible at the pump, but AAA expects gas prices to remain low through the holidays."
Diesel in Tennessee is selling for an average price of $3.75 per gallon. One day prior, it was at $3.77. The price one-year ago was a whopping $4.51 per gallon in Tennessee.
Quick Facts
- 57% of Tennessee gas stations have prices below $2.75
- The lowest 10% of pump prices are $2.47 for regular unleaded
- The highest 10% of pump prices are $3.19 for regular unleaded
- Tennessee dropped to the 14th least expensive market in the nation
National Gas Prices - The national average for a gallon of gas is now three cents below the 2022 low of $3.09 and will likely dip further in the coming days. For those keeping score at home, last year’s low came on December 23. Since last week, the national average has fallen by nine cents to $3.06. The main reasons are tepid demand and a low cost for oil, which is hovering around $70 per barrel.
According to new data from the Energy Information Administration (EIA), gas demand increased from 8.47 to 8.86 million b/d last week. Meanwhile, total domestic gasoline stocks increased slightly to 224 million bbl. Typically, higher demand would push pump prices higher, but lower oil prices have pushed prices lower. If oil prices remain low, drivers can expect pump prices to do the same during the holiday season.
Today's national average of $3.06 is 26 cents less than a month ago and eight cents less than a year ago.
National Oil Market Dynamics - At the close of Wednesday’s formal trading session, WTI increased by 86 cents to settle at $69.47. Oil prices increased last week after the US Federal Reserve announced that it plans to hold interest rates steady through the end of the year and potentially reduce it up to three times in 2024. The market had been concerned that the economy could tip into a recession if interest rates kept increasing. Oil demand and prices would likely decline if a recession occurred. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 4.3 million bbl to 440.7 million bbl last week.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Tennessee Regional Prices
- Most expensive metro markets - Memphis ($2.82), Jackson ($2.82), Nashville ($2.77)
- Least expensive metro markets - Chattanooga ($2.61), Cleveland ($2.68), Clarksville ($2.68)
