TN Gas Prices Fall Five Cents
Tennessee is the 4th least expensive market in the country
Labor Day road trippers saw the cheapest holiday gas prices in three years. Tennesseans paid $2.91 per gallon on yesterday's holiday, the same price as in 2021. Over last week, gas prices fell five cents, on average, across the state. The Tennessee Gas Price average is now $2.90 which is 19 cents less expensive than one month ago and 52 cents less than one year ago.
"Despite a busy Labor Day weekend for travel, drivers saw a nice break at the pump over the holiday weekend," said Megan Cooper, spokeswoman, AAA - The Auto Club Group. "With the summer driving season coming to a close, we're now headed into an expected slump in gasoline demand over the next several months. While the overall seasonal trend this time of year is slowly declining pump prices, it's important to note that we are still in hurricane season. Any hurricane threats, especially in the gulf coast refining areas, could impact pump prices."
Holiday Travel Trends
The summer travel season just came to an end and Tennesseans are already beginning to make travel plans for the year-end holidays.
According to a new AAA survey, over half of residents (56%) plan to take an overnight vacation between Thanksgiving and New Year’s Day. Over two in five Tennesseans (42%) typically begin booking their trip(s) before September.
Click here for more information on holiday travel and to view the full survey.
National Gas Prices
Pump prices are still falling, but at a slower pace than recently, dipping just three cents to $3.32 since last week. A slight uptick in gas demand may reflect the last hurrah for summer travelers. A storm system forming in the Atlantic may pose a threat to falling gas prices as well.
According to new data from the Energy Information Administration (EIA), gas demand rose last week from 9.19 million b/d to 9.30. Meanwhile, total domestic gasoline stocks fell from 220.2 to 218.4 million barrels, and gasoline production decreased last week, averaging 9.6 million daily. Unspectacular gasoline demand and falling oil costs may cause pump prices to slide further.
Today’s national average for a gallon of gas is $3.32, 15 cents less than a month ago and cents less than a year ago.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI fell by $1.01 to settle at $74.52 a barrel. The EIA reports that crude oil inventories decreased by 0.8 million barrels from the previous week. At 425.2 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.
Tennessee Regional Prices
- Most expensive metro markets - Jackson ($2.97), Memphis ($2.96), Nashville ($2.92)
- Least expensive metro markets - Chattanooga ($2.80), Clarksville ($2.81), Kingsport ($2.84)
Tennessee Gas Price Averages
(Price per gallon of regular unleaded gasoline)
 | Monday | Sunday | Week Ago | Month Ago | One Year Ago |
Tennessee | $2.905 | $2.913 | $2.958 | $3.094 | $3.421 |
Chattanooga | $2.806 | $2.820 | $2.910 | $3.057 | $3.388 |
Knoxville | $2.916 | $2.917 | $2.943 | $3.006 | $3.329 |
Memphis | $2.961 | $2.957 | $2.978 | $3.056 | $3.464 |
Nashville | $2.922 | $2.941 | $3.007 | $3.186 | $3.513 |
Click here to view current gasoline price averages | |||||
The Auto Club Group (ACG), named a 2026 Forbes Most Trusted Company in America, is the second-largest AAA club in North America, with more than 13 million members across 14 U.S. states and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, financial services, travel offerings and more. ACG is part of the national AAA federation, which serves more than 66 million members across the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety. For more information, download the AAA Mobile app, visit AAA.com, and follow us on social media.