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HomeNewsCOVID-19 Omicron Variant concerns cause Gas Price Drop

COVID-19 Omicron Variant concerns cause Gas Price Drop

AAANashville, TN – Tennessee gas prices fell another 1.5 cents this week bringing the Tennessee Gas Price average to $2.99. Prices are now one cent cheaper than last month, but still 95 cents more than this time last year.   

Across the nation, gasoline prices fluctuated over the past few days as fears of an omicron-driven economic slowdown were countered by news of a severe fire at a major oil refinery.

Last Thursday, four people were injured when a fire erupted at the Exxon Mobil Corp refinery in Baytown, Texas. The plant is one of the largest refining and petrochemical facilities in the United States.
 
If the damage forces the plant offline for long, the disruption could push gasoline prices higher. Before the fire, the national average had declined steadily. Now the decline has slowed, but the national average for a gallon of gas still fell two cents on the week to $3.28.

“We should learn more in the coming days about the extent of the damage to the refinery,” said Stephanie Milani, Tennessee Public Affairs Director, AAA– The Auto Club Group. “If it can be back up and running in a few weeks, the effect could be minimal.  But if repairs take months, consumers could begin seeing higher prices again at the pump.”

National Gas Prices

Today’s national average of $3.28 is 11 cents less than a month ago and $1.03 more than a year ago.

National Oil Market Dynamics

At the close of last week’s formal trading session, WTI increased by $1.03 to settle at $73.79. Despite demand concerns over the omicron variant of COVID-19, crude prices increased after the EIA reported that total domestic crude stocks decreased by 4.7 million bbl last week to 423.6 million bbl.

The current stock level is 15.2 percent lower than in December 2020, contributing to pressure on domestic crude prices. For this week, prices could continue to climb if EIA’s next weekly report shows another decrease in total stocks.

Tennessee Gas Price Averages 

(Price per gallon of regular unleaded gasoline) 

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Monday

Sunday

Week Ago

Month Ago

One Year Ago

Tennessee

$2.989

$2.900

$3.004

$3.098

$2.037

Chattanooga

$2.946

$2.951

$2.953

$3.071

$1.940

Knoxville

$3.000

$3.004

$3.014

$3.108

$2.049

Memphis

$3.077

$3.073

$3.074

$3.138

$2.051

Nashville

$3.002

$3.003

$3.016

$3.107

$2.074

Click here to view current gasoline price averages

 


About AAA – The Auto Club Group

The Auto Club Group (ACG) is the second-largest AAA club in North America with more than 14 million members across 14 U.S. states, the province of Quebec, and two U.S. territories. 

ACG and its affiliates provide members with roadside assistance, insurance products, banking, and financial services, travel offerings, and more. ACG belongs to the national AAA federation with more than 62 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety.

For more information, get the AAA Mobile app, visit AAA.com, and follow us on Facebook, Twitter, and LinkedIn.

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