25
August
2019
|
17:00 PM
America/Chicago

Labor Day Gas Prices Likely to be Lowest in Years

Tennessee drivers to pay 30 cents per gallon less than last year's holiday weekend

NASHVILLE, Tenn., (August 26, 2019) — Labor Day is quickly approaching and gas prices for the holiday weekend are lining up to be the lowest in 2-3 years. However, there are still a number of factors that could push prices higher before the holiday. Today, the average price for gasoline in Tennessee is $2.29 per gallon. Drivers are currently paying 30 cents less than they did on Labor Day 2018 $2.59.

"Labor Day travelers will benefit from lower oil prices this year as they fill up for their holiday road trip," said Seth Andrews, Tennessee Government & Public Relations Consultant, AAA – The Auto Club Group. "Strong US oil production rates are holding oil prices about 15% below last year's levels, effectively reducing the price of producing gasoline. Gas prices should remain low heading into the holiday, unless something unexpected threatens fuel supplies, like geopolitical tensions or a hurricane in the Gulf of Mexico."

Labor Day marks the end of the busy summer travel season, and the last big surge in gasoline demand before the fall. The expectation of strong demand can promote a slight and temporary bump at the pump before the holiday. However, after Labor Day, refineries begin their seasonal switch to winter-blend gasoline. Summer-blend gasoline is more expensive to produce than winter-blend, because the EPA requires more additives in the hotter months of the year. The combination of lower demand and fuel production costs typically restores downward pressure on pump prices through the end of the year.

Crude Oil

On Friday, crude oil prices took a downward turn as a result of continued trade tensions between the U.S. and China. Reuters reported that oil prices fell more than 2% on Friday after China unveiled retaliatory tariffs against $75 billion worth of U.S. goods.

Find Tennessee Gas Prices

State and metro averages can be found here

CURRENT AND PAST PRICE AVERAGES

Regular Unleaded Gasoline

Monday Sunday Week Ago Month Ago One Year Ago 2018 High Record High
National $2.591 $2.593 $2.618 $2.749 $2.837 $2.97 (5/26/2018) $4.11 (7/17/2008)
Tennessee $2.293 $2.296 $2.328 $2.487 $2.591 $2.73 (5/27/2018) $4.12 (9/15/2008)
Click here to view current gasoline price averages

Gas Price Survey Methodology

AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

About The Auto Club Group

The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, financial services and travel offerings to over 9.6 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 59 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. Visit AAA on the Internet at AAA.com.