NASHVILLE, Tenn.,
18
December
2023
|
20:49 PM
America/Chicago

TN Gas Prices Fall Five Cents

Tennessee drops to the 14th least expensive market in the nation

NASHVILLE, Tenn., (December 18, 2023) —  Tennessee gas prices have dropped to the lowest prices that we've seen so far in 2023. Over last week, gas prices across the state fell five cents, on average. The Tennessee Gas Price average is now $2.75 which is 19 cents less expensive than one month ago and a penny less than one year ago.  

"Tennessee pump prices are falling at the perfect time, as more than 2.5 million Tennesseans prepare to take a road trip for the year-end holidays," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "Right now, over half of Tennessee gas stations have prices below $2.75 per gallon. Strong domestic gasoline supplies and low oil prices have contributed to the downward pressure on prices at the pump. Oil prices regained some strength last week, so a modest increase is possible at the pump, but AAA expects gas prices to remain low through the holidays." 

Quick Facts

  • 57% of Tennessee gas stations have prices below $2.75 
  • The lowest 10% of pump prices are $2.47 for regular unleaded 
  • The highest 10% of pump prices are $3.19 for regular unleaded
  • Tennessee dropped to the 14th least expensive market in the nation

National Gas Prices

The national average for a gallon of gas is now three cents below the 2022 low of $3.09 and will likely dip further in the coming days. For those keeping score at home, last year’s low came on December 23. Since last week, the national average has fallen by nine cents to $3.06. The main reasons are tepid demand and a low cost for oil, which is hovering around $70 per barrel. 

According to new data from the Energy Information Administration (EIA), gas demand increased from 8.47 to 8.86 million b/d last week. Meanwhile, total domestic gasoline stocks increased slightly to 224 million bbl. Typically, higher demand would push pump prices higher, but lower oil prices have pushed prices lower. If oil prices remain low, drivers can expect pump prices to do the same during the holiday season.

Today's national average of $3.06 is 26 cents less than a month ago and eight cents less than a year ago.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI increased by 86 cents to settle at $69.47. Oil prices increased last week after the US Federal Reserve announced that it plans to hold interest rates steady through the end of the year and potentially reduce it up to three times in 2024. The market had been concerned that the economy could tip into a recession if interest rates kept increasing. Oil demand and prices would likely decline if a recession occurred. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 4.3 million bbl to 440.7 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 ($2.82), Jackson ($2.82), Nashville ($2.77)
  • Least expensive metro markets - Chattanooga ($2.61), Cleveland ($2.68), Clarksville ($2.68)


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

$2.751

$2.760

$2.801

$2.949

$2.761

Chattanooga

$2.615

$2.641

$2.635

$2.800

$2.707

Knoxville

$2.730

$2.737

$2.795

$2.938

$2.893

Memphis

$2.829

$2.825

$2.871

$2.972

$2.865

Nashville

$2.778

$2.790

$2.818

$3.010

$2.666

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.