Volunteer state’s gas price average is 4th lowest in nation
Gas prices across the state held steady over last week and we’re starting the week with the same state gas price average as last week. The Tennessee Gas Price average is now $2.72 which is a penny less expensive than one month ago and 52 cents less than one year ago.
“Lower crude oil prices and gasoline demand are helping to make gas prices in the state over 50 cents cheaper than this time last year,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “This is great news for those planning a road trip for Memorial Day.”
Memorial Day Outlook
AAA projects over 948,000 Tennesseans will travel by car over Memorial Day weekend. That’s over 16,000 more travelers than last year. This year, 84% of Tennessee Memorial Day travelers will take a road trip.
Fortunately, a trip to the gas pump should be lower than last year. On Memorial Day 2024, the national average for a gallon of regular was $3.59 per gallon. In Tennessee, it was $3.17 per gallon. So far this spring, gas prices have avoided the usual seasonal spikes, largely due to lower crude oil costs.
“As summer unofficially begins and travel demand picks up, there’s a chance that pump prices will edge upward,” said Megan Cooper, spokesperson for AAA – The Auto Club Group. “Historically, gas prices tend to peak in the spring or summer before gradually easing as schools reopen in the fall.”
Click here for the full Memorial Day Travel Forecast.
National Gas Prices
In the lull between spring travel and the kick-off to summer, gas demand slid week over last week, dropping the national average three cents to land at $3.13. OPEC+ (the group of oil-producing countries) announced last Saturday that it will increase output again in June, widening the supply surplus, which could cause crude prices to continue to fall. This means road trippers would see lower prices at the pump this summer. The national average is 48 cents less than it was one year ago today.
According to new data from the Energy Information Administration (EIA), gasoline demand decreased from 9.09 million b/d last week to 8.71. Total domestic gasoline supply slightly increased from 225.5 million barrels to 225.7. Gasoline production decreased last week, averaging 9.7 million barrels per day.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI fell $1.02 to settle at $58.07 a barrel. The EIA reports that crude oil inventories decreased by 2 million barrels from the previous week. At 438.4 million barrels, U.S. crude oil inventories are about 7% below the five-year average for this time of year.
Tennessee Regional Prices
- Most expensive metro markets – Nashville ($2.79), Jackson ($2.77), Johnson City ($2.75)
- Least expensive metro markets – Morristown ($2.61), Clarksville ($2.64), Chattanooga ($2.67)
