26
February
2023
|
17:00 PM
America/Chicago

AAA: TN Gas Prices Fall Nine Cents

Tennessee is the 9th least expensive market in the nation

NASHVILLE, Tenn., (February 27, 2023) — Gas prices across the state are once again trending lower. Over last week, pump prices fell nine cents, on average. The Tennessee Gas Price average is now $3.01 which is 28 cents less expensive than one month ago and 42 cents less than one year ago.

"The recent increases we've seen at the pump were likely a delayed response to an oil price hike that happened a couple of weeks ago," said Megan Cooper, spokeswoman, AAA - The Auto Club Group. "The good news for Tennesseans is that we're once again seeing modest declines in our gas prices. Over the past two weeks we've seen wholesale prices drop a total of 15 cents, which means that it's likely we'll continue to see prices move lower in the short term. This week, it's very likely that we'll see the state average drop below $3 per gallon."

Quick Facts

  • 65% of Tennessee gas stations have prices below $3.00
  • The lowest 10% of pump prices are $2.78 for regular unleaded
  • The highest 10% of pump prices are $3.38 for regular unleaded
  • Tennessee is the 9th least expensive market in the nation

National Gas Prices

The national average for a gallon of gas fell five cents since last week to $3.36. The main reason is the price of oil, which fell into the mid $70s per barrel, nearly $5 cheaper than a week ago.

According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 8.27 million b/d to 8.91 million b/d last week. Meanwhile, total domestic gasoline stocks decreased by 1.8 million bbl to 240.1 million bbl last week. However, fluctuating oil prices have contributed to pushing pump prices lower. But if gas demand keeps rising amid tightening domestic stocks, drivers may see an end to future pump price drops.

Today's national average of $3.36 is 14 cents less than a month ago and 24 cents less than a year ago.

National Oil Market Dynamics

At the close of Wednesday's formal trading session, WTI decreased by $2.41 to settle at $73.95. Crude prices have declined due to the strengthening of the dollar and market concerns about increasing domestic oil inventories. An increase in supply could mean that demand may not move as high as anticipated. EIA reported that total domestic commercial crude inventories increased substantially by 7.6 million bbl to 479 million bbl last week.

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

Tennessee Regional Prices

  • Most expensive metro markets - Memphis ($3.10), Morristown ($3.06), Knoxville ($3.05)
  • Least expensive metro markets - Chattanooga ($2.91), Clarksville ($2.96), Kingsport ($2.97)


Tennessee Gas Price Averages

(Price per gallon of regular unleaded gasoline)

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Monday

Sunday

Week Ago

Month Ago

One Year Ago

Tennessee

$3.018

$3.028

$3.107

$3.294

$3.436

Chattanooga

$2.915

$2.937

$3.044

$3.321

$3.446

Knoxville

$3.058

$3.062

$3.101

$3.187

$3.430

Memphis

$3.102

$3.107

$3.169

$3.294

$3.403

Nashville

$3.032

$3.044

$3.148

$3.385

$3.518

Click here to view current gasoline price averages

About AAA - The Auto Club Group

The Auto Club Group (ACG) is the second largest AAA club in North America with more than 13 million members across 14 U.S. states, the province of Quebec and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking and financial services, travel offerings and more. ACG belongs to the national AAA federation with more than 62 million members in the United States and Canada. AAA's mission is to protect and advance freedom of mobility and improve traffic safety. For more information, get the AAA Mobile app, visit AAA.com, and follow us on Facebook, Twitter and LinkedIn.