AAA: Gas Prices Hold Steady

Gas prices across Tennessee held steady over Memorial Day weekend. Today's state gas price average is the same price as one week ago. The Tennessee Gas Price average is now $2.87 which is 17 cents more than one month ago and $1.15 more than one year ago.

"Gasoline supply and demand levels are looking more like typical summer numbers as demand has steadily jumped week-over-week since the end of April and supply declines. The increasing demand and decreasing supply combined with more expensive crude oil prices mean gas prices are likely to fluctuate throughout June," said Megan Cooper, spokeswoman, AAA - The Auto Club Group.

Quick Facts

• 93% of Tennessee gas stations have prices below $3.00 per gallon
• The lowest 10% of pump prices are $2.66 for regular unleaded
• The highest 10% of pump prices are $3.11 for regular unleaded

National Gas Prices

At $3.04, the national gas price average only increased one penny leading up to Memorial Day weekend. The majority of states saw no change to pump prices or a decline on the week. However, prices may not stay stagnant for long. For the week ending May 21, demand jumped to 9.4 million b/d--the highest reported number since early March 2020 and up nearly 30% over the same week last year, indicating motorists are filling up more frequently.

Today's average is $1.05 more than last year at this time and 15 cents more expensive than last month. The May national gas price averaged $3/gallon. That is just 11 cents more than the May 2018 and 2019 national averages. With a $3+/gallon average at the start of June, this month could prove to be the most expensive average in years.

National Oil Market Dynamics

At the close of Friday's formal trading session, WTI decreased by 53 cents to settle at $66.32. Although prices ended the day down due to market liquidation at the end of the month, crude prices gained on the week after the Energy Information Administration's weekly report showed that total domestic crude inventories decreased by 1.7 million bbl to 484.3 million bbl. However, last week's price gains were limited by market concerns that increasing coronavirus infections around the world could reduce crude consumption this year. For this week, crude prices could climb further if EIA's next report shows another decline in crude stocks.

Tennessee Regional Prices

• Most expensive metro markets - Johnson City ($2.95), Morristown ($2.90), Kingsport ($2.90)
• Least expensive metro markets - Chattanooga ($2.78), Cleveland ($2.81), Jackson ($2.84)