NASHVILLE, Tenn., (May 1, 2023) — For the second week in a row the state gas price average is trending lower. Gas prices across Tennessee fell nine cents, on average, over last week. The Tennessee Gas Price average is now $3.22 which is only a penny more expensive than one month ago and 67 cents less than one year ago.
“Pump prices are trending lower thanks to a two-week streak of declines in crude oil pricing,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “It’s likely Tennesseans will see additional decreases in pump pricing through this week. If crude oil prices fall further, it could mean that drivers will see even more discounted prices at the pump.”
62% of Tennessee gas stations have prices below $3.25
The lowest 10% of pump prices are $2.96 for regular unleaded
The highest 10% of pump prices are $3.58 for regular unleaded
Tennessee is the 6th least expensive market in the nation
National Gas Prices
A lower oil price is causing pump prices to fall, with the national average for a gallon of regular gasoline dropping a nickel since last week to hit $3.61.
According to new data from the Energy Information Administration (EIA), gas demand increased significantly from 8.52 to 9.51 million b/d last week. The spike in demand surprised market observers, but the estimate could be revised when EIA releases final demand measurements for April. Meanwhile, total domestic gasoline stocks decreased by 2.4 million bbl to 221.1 million bbl. Higher demand, alongside a decline in stocks, would typically push pump prices up; however, fluctuating oil prices have pushed them lower. If oil prices continue to decline, pump prices will likely follow suit.
Today’s national average of $3.61 is 11 cents more than a month ago but 57 cents less than a year ago.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI decreased by $2.77 to settle at $74.30. Oil prices fell last week amid ongoing market concerns that low consumer confidence could contribute to a recession this year. If a recession occurs, oil demand and prices will likely decline. Additionally, the EIA reported that total domestic commercial crude inventories de-creased by 5.1 million bbl to 460.9 million bbl last week.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Tennessee Regional Prices
Most expensive metro markets – Nashville ($3.27), Knoxville ($3.25), Jackson ($3.24)
Least expensive metro markets – Chattanooga ($3.07), Clarksville ($3.16), Cleveland ($3.19)