TN Gas Prices Move 12 Cents Higher

Tennessee is the 7th least expensive market in the nation

NASHVILLE, Tenn., (July 20, 2026) — Gas prices across the state moved 12 cents more expensive, on average, over last week. The Tennessee Gas Price average is now $3.61 which is eight cents more expensive than one month ago and 86 cents more expensive than one year ago.

"Geopolitical tensions are still placing upward pressure on crude oil prices, which is causing pump prices to fluctuate higher," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "Market uncertainty mixed with strong summer travel demand means that it's likely we'll see another round of increases in our local gas prices this week."

National Gas Prices

The national average for a gallon of regular gasoline went up 13 cents since last week to $4.00. Instability along the Strait of Hormuz is contributing to the increase at the pump and pushing crude oil prices toward $80 per barrel. Most states are still averaging less than $4 per gallon. Earlier this year, the national average remained in the $4 range all of April and May and most of June. The last time the national average was $4 or above was on June 17 when it was $4.02.

According to new data from the Energy Information Administration (EIA), gasoline demand remained flat last week at 8.84 million. Total domestic gasoline supply decreased from 212.1 million barrels to 210.5 million. Gasoline production decreased last week, averaging 9.6 million barrels per day.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI rose $3.08 to settle at $73.52 a barrel. The EIA reports that crude oil inventories increased by 3 million barrels from the previous week. At 411.4 million barrels, U.S. crude oil inventories are about 6% below the five-year average for this time of year.

Tennessee Regional Prices

• Most expensive metro markets - Cleveland ($3.68), Memphis ($3.66), Jackson ($3.65)
• Least expensive metro markets - Clarksville ($3.49), Knoxville ($3.54), Chattanooga ($3.57)

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.