AAA: Gas Prices Fall Six Cents

Gas prices across Tennessee fell for the second week in a row, dropping six cents, on average, over last week. The Tennessee Gas Price average is now $3.31 which is nearly 13 cents more expensive than one month ago and 15 cents more than one year ago.

"Relatively steady oil prices alongside continued lingering fears of an economic recession are helping to keep downward pressure on pump prices," said Megan Cooper, spokeswoman, AAA - The Auto Club Group. "The downward trend is likely to continue this week, making pump prices a little less scary as we head in Halloween."

Quick Facts

• 37% of Tennessee gas stations have prices below $3.25
• The lowest 10% of pump prices are $3.06 for regular unleaded
• The highest 10% of pump prices are $3.67 for regular unleaded
• Tennessee is the 6th least expensive market in the nation

National Gas Prices

The national average pump price fell nine cents over the past week to hit $3.79. It has dropped daily since October 11, primarily due to lower oil prices and fewer drivers than usual fueling up.

According to recent data from the Energy Information Administration (EIA), gas demand increased slightly from 8.28 million b/d to 8.68 million b/d last week. Total domestic gasoline stocks decreased marginally from 209.5 million bbl to 209.4 million bbl. Although gasoline demand is up slightly, it remains nearly 1 million bbl lower than this date last year. If demand remains low and oil prices don't spike, pump prices will likely keep falling.

Today's national average of $3.79 is nine cents higher than a month ago and 41 cents more than a year ago.

National Oil Market Dynamics

At the close of Friday's formal trading session, WTI increased by 54 cents to settle at $85.05. Although crude prices increased after the EIA reported that total domestic commercial crude inventories dropped by 1.7 million bbl to 437.4 million bbl last week, the price of oil had declined earlier in the week due to ongoing market concerns about crude demand as recession fears increased. If the market remains concerned about the rate of economic growth this week, crude prices could decline.

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

Tennessee Regional Prices

• Most expensive metro markets - Jackson ($3.48), Memphis ($3.42), Knoxville ($3.36)
• Least expensive metro markets - Cleveland ($3.22), Chattanooga ($3.23), Clarksville ($3.25)