Tennessee gas prices drop for 2nd straight week

Gas prices across Tennessee continue to stabilize, decreasing nearly two cents, on average, over last week. The Tennessee Gas Price average is now $3.13 which is 9 cents more expensive  than one month ago and $1.26 more than one year ago.  

“A slight dip in gas demand, possibly due to seasonal driving habit changes, is contributing to some price relief at the pump,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Unfortunately, the ongoing tight supply of crude oil will likely keep gas prices fluctuating, instead of dropping, for some time.”

The average price per gallon of regular unleaded in Coffee County is $3.12, which is a penny below the state average and 29 cents below the national average, which stands at $3.41.

Quick Facts

  • 18% of Tennessee gas stations have prices below $3.00 
  • The lowest 10% of pump prices are $2.92 for regular unleaded 
  • The highest 10% of pump prices are $3.38 for regular unleaded

National Gas Prices

Consumers caught a little break as the national average price for a gallon of gas leveled off at $3.41, down a penny since last week. Since October 30, the national average has fallen on nine different days, after having risen steadily each of the previous 31 days.

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 1.6 million bbl to 212.7 million bbl last week. Gasoline demand dropped from 9.5 million b/d to 9.26 million b/d. This drop coupled with an increase in the domestic crude oil supply caused downward pressure on prices. However, pump prices will likely remain elevated for consumers as long as oil prices are above $80 per barrel.

Today’s national average of $3.41 is 11 cents more than a month ago and $1.29 more than a year ago, and 81 cents more than in 2019.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI decreased by 80 cents to settle at $80.79. Crude prices decreased slightly last week as inflation fears weighed on the market. Additionally, prices also fell after EIA reported that the total domestic crude supply increased by 1 million bbl to 435.1 million bbl last week. However, according to EIA’s data, the total domestic crude supply is still down 11 percent compared to the previous year at this time, helping to keep elevated price pressure on crude. For this week, crude prices could decrease again if EIA’s next weekly report shows another crude inventory increase.