After declining for three consecutive weeks, Tennessee gas prices are now heading more expensive. The Tennessee Gas Price average is now $3.43 which is still seven cents less expensive than one month ago but twenty cents more than one year ago.
"Global fuel supplies continue to tighten, which is putting upward pressure on oil prices, and in turn is causing pump prices to rise as well," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "The big jumps we've seen in crude oil pricing would typically cause a more significant change in pump prices, however, the upward pressure on pump prices has been tempered by much lower demand. For this week, drivers should expect to see continued volatility at the pump."
- 79% of Tennessee gas stations have prices below $3.50
- The lowest 10% of pump prices are $3.19 for regular unleaded
- The highest 10% of pump prices are $3.73 for regular unleaded
- Tennessee is the 6th least expensive market in the nation
National Gas Prices
The national average for a gallon of gas rose by a nickel since last week to hit $3.88. The primary culprit is the surge in oil costs, which have jumped several dollars to hover around $90 per barrel.
According to new data from the Energy Information Administration (EIA), gas demand decreased significantly from 9.32 to 8.31 million b/d last week. Meanwhile, total domestic gasoline stocks jumped from 214.7 to 220.3 million bbl. Although gas demand has dropped amid increasing stocks, elevated oil prices have pushed pump prices higher.
Today's national average of $3.88 is a penny more expensive than one month ago and 21 cents more than a year ago.
National Oil Market Dynamics
At the close of Wednesday's formal trading session, WTI decreased by 32 cents to settle at $88.52. Oil prices fell last week after the EIA reported that total domestic commercial crude inventories increased by 4 million bbl to 420.6 million bbl. However, earlier last week, crude prices rallied amid ongoing market concern that global oil supply will remain tight for the remainder of 2023. According to the International Energy Agency's September 2023 Oil Market Report, production cuts from Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries will lead to an oil supply shortfall this fall and winter.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Tennessee Regional Prices
- Most expensive metro markets - Nashville ($3.51), Cleveland ($3.49), Johnson City ($3.48)
- Least expensive metro markets - Knoxville ($3.33), Morristown ($3.35), Chattanooga ($3.41)