TN Gas Prices Fall Seven Cents

NASHVILLE, Tenn., (October 27, 2025) — The temperature isn't the only thing falling across Tennessee - gas prices across the state fell seven cents, on average, over last week . The Tennessee Gas Price average is now $2.61 which is 12 cents less expensive than one month ago and 18 cents less than one year ago.  

"Fall weather is in full swing across the state, and so are seasonally low prices at the pump," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "Barring any major shifts in the market, it's likely this trend will continue in the short term, which is great news for drivers." 

National Gas Prices

Gas prices remained relatively quiet this past week. The national average for a gallon of regular went down a couple of cents to $3.05. Even though the national average hasn’t reached the $3 mark, drivers are paying less than they were this time last year, and that trend should continue as we enter the colder months. Gasoline demand goes down in the fall as fewer people are taking road trips. 

According to new data from the Energy Information Administration (EIA), gasoline demand remained flat at 8.45 million b/d. Total domestic gasoline supply decreased from 218.8 million barrels to 216.7 million. Gasoline production increased last week, averaging 9.6 million barrels per day. 

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI rose $1.26 to settle at $58.50 a barrel. The EIA reports crude oil inventories decreased by 1 million barrels from the previous week. At 422.8 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 ($2.68), Johnson City ($2.66), Memphis ($2.65)
• Least expensive metro markets - Clarksville ($2.48), Chattanooga ($2.52), Cleveland ($2.57) 

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

	Monday	Sunday	Week Ago	Month Ago	One Year Ago
Tennessee	$2.615	$2.610	$2.684	$2.732	$2.790
Chattanooga	$2.523	$2.514	$2.628	$2.615	$2.753
Knoxville	$2.617	$2.619	$2.682	$2.760	$2.733
Memphis	$2.658	$2.654	$2.699	$2.785	$2.814
Nashville	$2.650	$2.631	$2.732	$2.751	$2.836
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.