30
July
2023
|
17:00 PM
America/Chicago

AAA: TN Gas Prices Rise 21 Cents

Tennessee fell to the 4th least expensive market in the nation for gas prices

NASHVILLE, Tenn., (July 31, 2023) — Gas prices are continuing to rise across the state, jumping 21 cents, on average, over last week. The Tennessee Gas Price average is now $3.38 which is 29 cents more expensive than one month ago but 41 cents less than one year ago.

The biggest factor behind the recent surge in gas prices is the price of crude oil, which has risen 15% over the past five weeks. Record-breaking heat has also caused a reduction in fuel output at Gulf Coast refineries, adding additional upward pressure on pump prices.

"After gas prices rose significantly over much of last week, our state gas price average has actually remained the same since Saturday, " said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "Even with a momentary stall in our state gas price average, drivers can still likely expect fluctuations at the pump through this week. If crude oil prices hold steady, it's likely that the significant daily gains in gas prices could be behind us. However, if crude prices continue to rise, pump prices would likely follow suit."

Quick Facts

  • 14% of Tennessee gas stations have prices below $3.25
  • The lowest 10% of pump prices are $3.17 for regular unleaded
  • The highest 10% of pump prices are $3.69 for regular unleaded
  • Tennessee fell to the 4th least expensive market in the nation

National Gas Prices

The national average for a gallon of gas awoke from a months-long slumber, surging 16 cents since last week to $3.75. The primary cause appears to be the oil price, which has marched nearly $4 higher in the past few days to hover near $80 per barrel. As oil accounts for almost 50 percent of the cost of a gallon of gas, higher oil prices usually mean higher pump prices.

According to new data from the Energy Information Administration (EIA), gas demand rose slightly from 8.86 to 8.94 million b/d last week. Meanwhile, total domestic gasoline stocks dipped from 218.4 to 217.6 million bbl. With supplies tight, if demand should spike, pump prices will follow suit.

Today's national average of $3.75 is 21 cents more than a month ago but 47 cents less than a year ago.

National Oil Market Dynamics

At the close of Wednesday's formal trading session, WTI decreased by 85 cents to settle at $78.78 before rebounding again Thursday morning. Due to extended repair timelines at refineries, lower refinery oil usage rates will influence how much oil prices rise. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 600,000 bbl to 456.8 million bbl.

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

Tennessee Regional Prices

  • Most expensive metro markets - Nashville ($3.44), Memphis ($3.44), Cleveland ($3.43)
  • Least expensive metro markets - Morristown ($3.26), Kingsport ($3.29), Knoxville ($3.31)


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

$3.388

$3.388

$3.179

$3.095

$3.796

Chattanooga

$3.369

$3.379

$3.170

$3.054

$3.701

Knoxville

$3.317

$3.311

$3.086

$3.075

$4.009

Memphis

$3.443

$3.431

$3.222

$3.128

$3.902

Nashville

$3.446

$3.450

$3.258

$3.156

$3.711

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.