Tennessee Gas Prices expected to Climb

Nashville, TN – After almost a month of steady prices, consumers can expect higher prices at the pump. Since last Monday, gas prices across Tennessee have risen three cents, on average. 

The Tennessee Gas Price average is now $3.02 which is two cents cheaper than one month ago and 89 cents more than one year ago.  

“Markets, in general, don’t like uncertainty and volatility, and the oil market is no exception,” said Stephani Milani, Tennessee Public Affairs Director, AAA – The Auto Club Group. “The oil production cuts by Kazakhstan demonstrate that in times of tight supply, it doesn’t take much to put upward pressure on the overall price of oil.”

Quick Facts

• 64% of Tennessee gas stations have prices below $3.00 
• The lowest 10% of pump prices are $2.81 for regular unleaded 
• The highest 10% of pump prices are $3.35 for regular unleaded

National Gas Prices

Gasoline prices edged upward last week, driven primarily by the price surge in crude oil, which is closing in on $80.00 a barrel. Events on the far side of the globe are fueling the recent rise. Social unrest and violence in Kazakhstan, a member of the OPEC+ alliance, have forced that nation to cut production.

Before the recent flare-up of violence, Kazakhstan pumped nearly 2 million barrels of crude a day. In contrast, the United States, as the top oil-producing country in the world, pumped an average of 18.6 million barrels a day.  Since the global price for oil accounts for nearly half of what consumers pay at the pump, higher oil costs will usually result in higher gasoline costs. The national average for a gallon of gas rose two cents to $3.30.

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks rose by 10.1 million bbl to 232.8 million bbl last week. On the other hand, gasoline demand decreased from 9.72 million b/d to 8.17 million b/d. Typically, pump prices decline due to lower gas demand and a rise in total stocks, but continued growth in the price of crude oil has helped to elevate pump prices. As oil prices continue to climb near $80 a barrel, pump prices will likely follow suit.

Today’s national average of $3.30 is three cents less than a month ago and $1.01 more than a year ago.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI decreased by 56 cents to settle at $78.90.

Although prices moved lower on Friday due to contract pricing fluctuations at the beginning of the year and demand concerns over the COVID-19 omicron variant, crude prices increased overall last week after the EIA reported that total domestic crude stocks decreased by 2.1 million bbl last week to 417.9 million bbl.
 
The current stock level is approximately 14 percent lower than at the end of December 2020, contributing to pressure on domestic crude prices. For this week, crude prices could continue to climb if EIA’s next report shows another inventory decline.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad, and Android. The app can also map a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more at AAA.com/mobile.

Tennessee Regional Prices 

• Most expensive metro markets – Memphis ($3.09), Nashville ($3.06), Morristown ($3.05)
• Least expensive metro markets – Kingsport-Bristol ($2.92), Clarksville ($2.94), Cleveland (2.97)

Tennessee Gas Price Averages 

(Price per gallon of regular unleaded gasoline) 

	Monday	Sunday	Week Ago	Month Ago	One Year Ago
Tennessee	$3.023	$3.024	$2.987	$3.039	$2.130
Chattanooga	$2.991	$2.997	$2.962	$3.005	$2.112
Knoxville	$3.027	$3.025	$2.995	$3.049	$2.127
Memphis	$3.092	$3.091	$3.085	$3.093	$2.105
Nashville	$3.063	$3.063	$3.001	$3.048	$2.182
Click here to view current gasoline price averages