Tennessee gas prices drop by six cents, majority of metro areas below $3/gallon

NASHVILLE – Tennessee gas prices fell by an average of six cents over the past week, with nearly all metro areas in the state now reporting averages below $3 per gallon. The statewide average price for gas currently stands at $3.01, down 11 cents from one month ago and 42 cents lower than this time last year.

“Tennessee drivers saw a slight break at the pump over last week, with several areas of the state seeing pump prices below $3 per gallon,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “We’re still seeing some uncertainty in the market, so fluctuations in our local gas prices cannot be ruled out this week. However, if market conditions persist, we could see our state average drop below $3 per gallon this week.”

Nationally, gas prices fell by three cents over the last week, bringing the average to $3.44 per gallon – a price similar to what was seen in June. The latest data from the Energy Information Administration (EIA) shows that gas demand dropped from 9.25 million barrels per day (b/d) to 8.96 million b/d last week, while total domestic gasoline stocks rose slightly from 223.8 to 225.1 million barrels. Gasoline production increased, averaging 10.0 million barrels per day, and crude oil production reached an all-time high of 13.4 million barrels per day.

Lower gasoline demand, rising supply, and stable oil costs could lead to further decreases in gas prices in the coming weeks. As of Monday, the national average for a gallon of gas is $3.44, down nine cents from last month and 40 cents from a year ago.

At the close of Wednesday’s trading session, West Texas Intermediate (WTI) crude oil rose by $2.03 to settle at $75.23 a barrel. The EIA reported a decrease in U.S. crude oil inventories by 3.7 million barrels from the previous week, with current inventories at 429.3 million barrels – about 6% below the five-year average for this time of year.

In Tennessee, the most expensive metro markets are Jackson ($3.09), Nashville ($3.04), and Memphis ($3.04). The least expensive markets are Clarksville ($2.89), Chattanooga ($2.90), and Morristown ($2.97).

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