Gas prices in Tennessee are experiencing a notable decline, with an average decrease of four cents recorded over the past week, as reported by AAA. Currently, the average price for a gallon of gas in the state stands at $2.56. This figure reflects a reduction of four cents compared to a month ago and is also 11 cents lower than the prices observed at the same time last year. In terms of affordability, Tennessee ranks as the seventh least expensive state for gas in the nation.
Megan Cooper, a representative from AAA – The Auto Club Group, indicated that this downward trend in gas prices is likely to persist through the end of the year. This expectation is primarily attributed to diminished demand and a decrease in crude oil prices.
On a national scale, the average price for fuel has dipped below the $3 mark for the first time in four years, settling at $2.95 as of Tuesday. AAA attributes this decline to falling crude oil prices, which are currently around $60 per barrel, in addition to the seasonal production of winter blend gasoline that is contributing to lower costs.
Data from the Energy Information Administration reveals a decrease in gas demand, which has fallen from 8.72 million barrels per day to 8.32 million. Concurrently, both domestic supply and production have seen an increase.
In Tennessee, the most expensive metropolitan areas for gas include Jackson, where prices are at $2.64, followed closely by Memphis at $2.61, and Nashville at $2.59. Conversely, the least expensive markets are found in Clarksville and Chattanooga, both at $2.46, with Cleveland following at $2.49.