Tennessee Gas Prices Fall 21 Cents

Gas prices across the state steadily declined over last week, falling 21 cents on average. The Tennessee Gas Price average is now $3.93 which is three cents less expensive than one month ago and $1.23 more expensive than one year ago.

“Crude oil prices have consistently declined over the last week amid reports of peace talks with Iran that would potentially reopen the Strait of Hormuz,” said Megan Cooper, spokeswoman for AAA - The Auto Club Group. “The price of crude oil accounts for about half the price you see at the gas pump, so any time we see dramatic drops in crude oil pricing we typically see this reflected in our pump prices as well."

The national average for a gallon of regular gasoline is down 18 cents from last week to $4.32. Crude oil prices have been going down amid reports of peace talks with Iran, but the fragile situation could cause oil prices to spike again if a ceasefire deal isn’t reached. Gas prices remain the highest they’ve been in four years and will likely remain elevated as the busy summer driving season gets underway.

According to new data from the Energy Information Administration, gasoline demand increased last week from 8.76 million b/d to 9.25 million. Total domestic gasoline supply decreased from 214.2 million barrels to 211.6 million. Gasoline production increased last week, averaging 9.9 barrels per day.

At the close of Wednesday’s formal trading session, WTI fell $5.21 to settle at $88.68 a barrel. The EIA reports crude oil inventories decreased by 3.3 million barrels from the previous week. At 441.7 million barrels, U.S. crude oil inventories are about 2% below the five-year average for this time of year.

Tennessee Regional Prices:

Most expensive metro markets - Memphis ($3.99), Knoxville ($3.97), Nashville ($3.96)

Least expensive metro markets - Chattanooga ($3.71), Clarksville ($3.78), Cleveland ($3.85)