TN Gas Prices Fall One Penny

Tennessee is the 4th least expensive market in the nation

NASHVILLE, Tenn., (August 24, 2026) — Gas prices across the state held relatively steady over last week, falling one penny, on average. The Tennessee Gas Price average is now $3.64 which is seven cents less expensive than one month ago and 88 cents more expensive than one year ago.

"Tennessee gas prices fluctuated over last week but held relatively steady despite a rise in crude oil prices," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "If crude oil prices remain elevated, it's likely that drivers will see more upward pressure on pump prices over this week."

Labor Day Gas Price Outlook: Gas Prices May Be More Expensive Than Last Year

While it's too early to know what gas prices will be on Labor Day weekend, current market trends suggest motorists could pay more than they did a year ago. The national average price of gasoline on Labor Day 2025 was $3.19 per gallon. In Tennessee, drivers paid an average of $2.76 per gallon.

Crude oil, which accounts for roughly half the price consumers pay for gasoline, remains more expensive than it was a year ago. Energy analysts also point to strong refinery demand and relatively low crude oil inventories as factors that continue to support higher fuel prices.

Click here for the full Labor Day travel outlook for 2026.

National Gas Prices

The national average for a gallon of regular gasoline is up 3 cents from last week at $4.09. This August is shaping up to be the highest on record. So far, the monthly average is $4.06, currently surpassing 2022 when the monthly average for August was $3.97. Even though gasoline demand is down, which is typical for this time of year, crude oil is pushing up the national average. Crude oil prices remain in the $80 per barrel range amid continued instability in the Strait of Hormuz.

According to new data from the Energy Information Administration (EIA), gasoline demand decreased last week from 8.96 million barrels per day to 8.68 million. Total domestic gasoline supply increased from 208.7 million barrels to 209.4 million. Gasoline production also increased last week, averaging 9.7 million barrels per day.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI rose 89 cents to settle at $85.83 a barrel. The EIA reports that crude oil inventories increased by 4.4 million barrels from the previous week. At 428.8 million barrels, U.S. crude oil inventories are matching the five-year average for this time of year.

Tennessee Regional Prices

• Most expensive metro markets - Jackson ($3.76), Memphis ($3.73), Johnson City ($3.72)
• Least expensive metro markets - Chattanooga ($3.49), Clarksville ($3.52), Cleveland ($3.54)

Tennessee Gas Price Averages
(Price per gallon of regular unleaded gasoline)

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.