Tennesseans find no Love at the Gas Pumps

Nashville, TN – AAA reports that gas prices have reached a seven-year high as tensions between Russia and Ukraine make the oil market even tighter. Since last Monday, gas prices across Tennessee have risen 11 cents, on average.

The Tennessee Gas Price average is now $3.26 which is 24 cents more expensive than one month ago and 98 cents more than one year ago.  

“Domestically, the moderating winter weather and optimism over a potential fading of the omicron variant have led to an increase in gas demand,” said Stephanie Milani, Tennessee Public Affairs Director, AAA – The Auto Club Group.
 
“Increased demand domestically, coupled with potential sanctions on Russian oil added to the already-tight global supply of crude oil doesn’t give much hope for relief at the pump anytime soon,” Milani stated. 

Quick Facts

• 46% of Tennessee gas stations have prices below $3.25 
• The lowest 10% of pump prices are $3.09 for regular unleaded 
• The highest 10% of pump prices are $3.53 for regular unleaded

National Gas Prices

The national average price for a gallon of gas rose sharply last week to $3.48, four cents more than a week ago. United States oil prices have now increased 22%, so far this year. Seven percent of that increase occurred in the past two weeks. 

The main culprit behind the recent climb in pump prices remains the high cost of crude oil, which is stubbornly bobbing around $90.00 per barrel. Moderating winter weather and optimism over a potential fading of the omicron variant have led to an increase in gas demand.

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks dropped by 1.6 million bbl to 248.4 million bbl last week. On the other hand, gasoline demand rose from 8.23 million b/d to 9.13 million b/d.

A decrease in total stocks and increased demand have contributed to upward pressure on pump prices, but rising crude prices continue to play the dominant role in pushing pump prices higher. Gas prices will likely increase as demand grows and crude oil prices remain above $90.00 per barrel.

Today’s national average for a gallon of gas is $3.48, which is 18 cents more than a month ago and 98 cents more than a year ago.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by $3.22 to settle at $93.10. The tension between Russia and Ukraine continues to contribute to rising oil prices. Russia is a member of OPEC+, and any sanctions based on their actions toward Ukraine may cause it to withhold crude oil from the global market.

Additionally, EIA reported that total domestic crude stocks decreased by 4.7 million bbl to 410.4 million bbl. The current stock level is approximately 13 percent lower than at the beginning of February 2021, contributing to pressure on domestic crude prices. If the tension between Russia and Ukraine continues this week or EIA’s next report shows another inventory decline, crude prices could continue to rise.

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 – Nashville ($3.33), Memphis ($3.31), Cleveland ($3.30)
• Least expensive metro markets – Kingsport ($3.19), Knoxville ($3.20), Johnson City ($3.21)

Tennessee Gas Price Averages 

(Price per gallon of regular unleaded gasoline) 

	Monday	Sunday	Week Ago	Month Ago	One Year Ago
Tennessee	$3.263	$3.260	$3.147	$3.022	$2.283
Chattanooga	$3.272	$3.271	$3.091	$2.974	$2.224
Knoxville	$3.203	$3.200	$3.100	$3.020	$2.277
Memphis	$3.306	$3.299	$3.249	$3.093	$2.312
Nashville	$3.326	$3.326	$3.176	$3.059	$2.301
Click here to view current gasoline price averages