27
August
2023
|
17:00 PM
America/Chicago

AAA: TN Gas Prices Fall Seven Cents Ahead of Labor Day

Tennessee moved to the 6th least expensive state in country for gas prices

NASHVILLE, Tenn., (August 28, 2023) — Gas prices in Tennessee are moving less expensive ahead of Labor Day weekend. The Tennessee Gas Price average is now $3.40 which is four cents more expensive than one month ago but four cents less than one year ago.

"Tennessee gas prices reversed course over last week and are trending less expensive, which is great news for those that are planning a road trip over the holiday weekend," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "Drivers taking road trips over Labor Day weekend will likely see gas prices similar to last year. Even though it's likely that gas prices will continue to trend lower over this week, continued volatility at the pump can't be ruled out given the recent uptick in tropical storm activity."

The Tennessee average for a gallon of regular gasoline was $3.37 on Labor Day 2022. Today's state average is only three cents more expensive. If current market trends continue, drivers could be met with pump prices lower than last year.

Quick Facts

  • 85% of Tennessee gas stations have prices below $3.50
  • The lowest 10% of pump prices are $3.17 for regular unleaded
  • The highest 10% of pump prices are $3.74 for regular unleaded
  • Tennessee is the 6th least expensive market in the nation

National Gas Prices

The national average for a gallon of gas dropped five cents since last week, despite growing gas demand. However, the price of oil has declined several dollars per barrel and is holding steady below $80, contributing to lower pump prices. As Labor Day approaches, gas demand and volatile oil prices, particularly during an active hurricane season, could limit how much lower prices descend in the weeks ahead.

According to new data from the Energy Information Administration (EIA), gas demand jumped from 8.85 to 8.91 million b/d last week. Meanwhile, total domestic gasoline stocks increased slightly from 216.2 to 217.6 million bbl. Although demand increased, growing stock levels contributed to pushing prices lower.

Today's national average of $3.81 is eight cents more than a month ago but four cents less than a year ago.

National Oil Market Dynamics

At the close of Wednesday's formal trading session, WTI decreased by 75 cents to settle at $78.89. Oil prices declined last week amid market concerns that an economic slowdown in China, the world's largest importer of crude oil, could push global oil demand down, which could also lead to lower prices. The price of oil has declined despite the EIA reporting that total domestic commercial crude inventories decreased from 439.7 to 433.5 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 - Cleveland ($3.47), Nashville ($3.46), Memphis ($3.46)
  • Least expensive metro markets - Chattanooga ($3.32), Johnson City ($3.33), Kingsport ($3.33)


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

$3.405

$3.412

$3.474

$3.369

$3.449

Chattanooga

$3.322

$3.337

$3.450

$3.400

$3.359

Knoxville

$3.337

$3.342

$3.361

$3.278

$3.524

Memphis

$3.464

$3.467

$3.491

$3.380

$3.527

Nashville

$3.469

$3.478

$3.578

$3.454

$3.432

Click here to view current gasoline price averages

Best and Worst Times to Travel by Car for Labor Day

INRIX, a global provider of transportation data and insights, expects Thursday, August 31 between 2 p.m. and 6 p.m. to be the busiest time on the roads during the long Labor Day weekend. Friday, September 1 is also expected to have higher than normal traffic volumes between 11 a.m. and 9 p.m.

Date

Worst Travel Time

Best Travel Time

Wednesday, Aug 30

12:00 PM - 8:00 PM

Before 7:00 AM

Thursday, Aug 31

12:00 PM - 8:00 PM

Before 7:00 AM

Friday, Sep 1

11:00 AM - 9:00 PM

Before 11:00 AM

Saturday, Sep 2

10:00 AM - 4:00 PM

After 6:00 PM

Sunday, Sep 3

Minimal Traffic Impact Expected

Monday, Sep 4

10:00 AM - 6:00 PM

After 7:00 PM

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.