08
October
2023
|
17:00 PM
America/Chicago

AAA: TN Gas Prices Fall Six Cents

Tennessee falls to the eighth least expensive state gas price average in the country

NASHVILLE, Tenn., (October 9, 2023) — Tennessee gas prices have decreased steadily for three consecutive weeks. Over last week, gas prices moved six cents lower, on average, across the state. The Tennessee Gas Price average is now $3.24 which is 13 cents less expensive than one month ago and 15 cents less than one year ago.

"Gas prices have fallen nearly 20 cents over the last three weeks, and we've reached a point where our current gas prices are cheaper than both one month ago and one year ago prices," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "Falling demand alongside growing gasoline supply is creating more downward pressure on pump prices. If oil prices remain stable, or continue to decline, it's likely that drivers can expect another round of price drops at the pump this week."

Quick Facts

  • 61% of Tennessee gas stations have prices below $3.25
  • The lowest 10% of pump prices are $2.97 for regular unleaded
  • The highest 10% of pump prices are $3.64 for regular unleaded
  • Tennessee is the 8th least expensive market in the nation

National Gas Prices

The decline in pump prices accelerated a bit since last week, with the national average falling 11 cents to $3.70. The primary culprits are slack demand and the falling cost of oil, which has shaved more than $10 and is hovering near $82 per barrel.

According to new data from the Energy Information Administration (EIA), gas demand dropped significantly from 8.62 to 8.01 million b/d last week. On the other hand, total domestic gasoline stocks increased substantially by 6.5 million bbl to 227 million bbl. Growing supply, amid low demand, has pushed pump prices down. If oil prices continue to decline, drivers can expect further price drops at the pump in the weeks ahead.

Today's national average of $3.70 is 12 cents less than a month ago and 21 cents less than a year ago.

National Oil Market Dynamics

At the close of Wednesday's formal trading session, WTI decreased by $5.01 to settle at $84.22. Oil prices fell sharply last week due to rising market concern that if interest rates continue to increase, the economy could tip into a recession. If a recession occurs, crude demand and prices would likely drop. Additionally, the EIA reported that total commercial crude stocks decreased by 2.2 million bbl to 414.1 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 - Jackson ($3.31), Memphis ($3.31), Johnson City ($3.29)
  • Least expensive metro markets - Chattanooga ($3.13), Cleveland ($3.16), Clarksville ($3.19)


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

$3.244

$3.253

$3.304

$3.374

$3.395

Chattanooga

$3.134

$3.158

$3.178

$3.309

$3.358

Knoxville

$3.213

$3.217

$3.275

$3.306

$3.385

Memphis

$3.314

$3.312

$3.394

$3.437

$3.441

Nashville

$3.285

$3.295

$3.337

$3.436

$3.423

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 64 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.