NASHVILLE, Tenn. (WBBJ) – Gas prices across the state fell two cents, on average, over last week. The Tennessee Gas Price average is now $3.36 which is 42 cents less expensive than one month ago but 63 cents more expensive than one year ago.
“Tennesseans that took a road trip over the holiday weekend were met with the most expensive Independence Day gas prices in four years,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Gas prices across the state saw several weeks of declines ahead of Independence Day, which gave drivers a much needed break at the pump.”
Tennessee drivers paid $3.39 per gallon for gasoline on Independence Day – 64 cents more than last year’s holiday, but $1.03 less expensive than what drivers paid per gallon in 2022 when the state gas price average was $4.42.
National Gas Prices
The national average is down 40 cents from a month ago at $3.79 for a gallon of regular gasoline. While that number is higher than last year, it’s a relief from this past spring, when the national average peaked at $4.56 on May 21. Crude oil prices have fallen to their lowest levels in months, dropping to the $60 a barrel range. Overall, gas prices remain the highest they’ve been in 4 years, but the downward trend since late May is welcome news during the busy summer driving season.
According to new data from the Energy Information Administration (EIA), gasoline demand increased last week from 8.77 million b/d to 9.13 million. Total domestic gasoline supply decreased from 216.3 million barrels to 214 million. Gasoline production increased last week, averaging 10 million barrels per day.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI fell 92 cents to settle at $68.58 a barrel. The EIA reports that crude oil inventories decreased by 3.8 million barrels from the previous week. At 408.4 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 – Memphis ($3.50), Jackson ($3.43), Johnson City ($3.39)
Least expensive metro markets – Clarksville ($3.08), Knoxville ($3.26), Morristown ($3.28)
Neighboring Cities Gas Prices
Nashville: $3.380, down 0.01 cents from last weeks $3.388.
Memphis: $3.500, down 0.03 cents from last weeks $3.532.
Chattanooga: $3.296, up 0.06 cents from last weeks $3.232.
Gas Price Survey Methodology
AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.
About AAA – The Auto Club Group
The Auto Club Group (ACG), named a 2026 Forbes Most Trusted Company in America, is the second-largest AAA club in North America, with more than 13 million members across 14 U.S. states and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, financial services, travel offerings and more. ACG is part of the national AAA federation, which serves more than 66 million members across the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety. For more information, download the AAA Mobile app, visit AAA.com, and follow us on social media.
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