Last week, gas prices in Tennessee saw a modest rise of two cents, resulting in an average cost of $2.75 per gallon for regular unleaded fuel. This figure represents a decrease of ten cents compared to the prices from a month ago, although it is three cents higher than the same time last year. With this recent increase, Tennessee now ranks as the sixth least expensive state for gasoline in the country.
Megan Cooper, a representative from AAA – The Auto Club Group, noted that while prices in Tennessee experienced some fluctuations throughout the week, they did see a slight decline over the weekend. Looking ahead, unless there are significant shifts in the market, it is anticipated that gas prices will remain relatively stable in the near future, which should provide some relief for those traveling during the fall season.
On a national scale, the average price for a gallon of regular gasoline remains steady at $3.13, unchanged from the previous week. Factors contributing to this stability include a decrease in seasonal demand and the transition to winter-blend gasoline, which is less expensive to produce. Additionally, the supply of crude oil remains robust, with OPEC+ expected to announce further production increases in November.
Recent data from the Energy Information Administration (EIA) indicates a decline in U.S. gasoline demand, which fell from 8.95 million barrels per day to 8.51 million. Conversely, total gasoline supply has risen from 216.6 million barrels to 220.7 million barrels, with production averaging 9.3 million barrels per day. U.S. crude oil inventories also saw an increase of 1.8 million barrels, bringing the total to 416.5 million barrels, which is approximately 4% below the five-year average.
In Tennessee, gas prices vary significantly across different metropolitan areas. For instance, Jackson has the highest average at $2.81 per gallon, followed closely by Nashville at $2.79 and Memphis at $2.78. On the other end of the spectrum, Clarksville boasts the lowest average at $2.66, with Kingsport and Morristown both at $2.69.