Tennessee Gas Prices drop below $4.00 per Gallon

Clarksville-Montgomery County has the Third Cheapest Gas Prices in Tennessee

Nashville, TN – For the first time in three weeks, the Tennessee gas price average fell below $4.00 per gallon. Gas prices, on average, fell five cents over last week. 

The Tennessee Gas Price average is now $3.97 which is 30 cents more expensive than one month ago and $1.28 more than one year ago.  

“Gas prices across Tennessee are drifting lower thanks to declining crude oil prices. About 75% of gas stations across the state have prices below $4.00 per gallon,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “The oil market is seeing stronger downward pressure from the planned release of oil from the U.S. Strategic Petroleum Reserve in an effort to ease global supply concerns.”

Quick Facts

• 75% of Tennessee gas stations have prices below $4.00 
• The lowest 10% of pump prices are $3.73 for regular unleaded 
• The highest 10% of pump prices are $4.22 for regular unleaded

National Gas Prices

President Joe Biden’s decision to release one million barrels of oil per day for six months (180 million barrels) from the Strategic Petroleum Reserve (SPR) helped send the global oil price tumbling to near $100 bbl. The release is intended to stem rising energy prices. The national average for a gallon of gas has fallen to $4.18

The SPR is a collection of underground salt caverns along the Gulf Coast where millions of gallons of crude oil are stored. Created in 1975 and managed by the U.S. Department of Energy, it is said to be the largest supply of emergency crude oil in the world.

President Joe Biden’s announcement came as OPEC and its allies announced they would maintain a plan to gradually ramp up production with 400,000 b/d monthly increases. Domestically, dipping gasoline demand is defying seasonal trends for a third straight week, perhaps due to higher pump prices and consumers altering their driving habits.

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks increased by 800,000 bbl to 238.8 million bbl last week. Gasoline demand decreased from 8.63 million b/d to 8.5 million b/d. The drop in gas demand, alongside growth in total stocks, contributes to price decreases. If demand continues to decline as gasoline stocks continue to build, the national average will likely continue to move lower.
 
Today’s national average for a gallon of gas is $4.18, which is six cents less than a week ago, 35 cents more than a month ago, and $1.31 more than a year ago.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI decreased by $1.01 to settle at $99.27. Crude prices climbed early last week after EIA’s weekly report revealed that total domestic crude stocks declined by 3.5 million bbl to 409.9 million bbl, approximately 18 percent lower than the level at the end of March 2021.

However, crude prices reversed course after the U.S. announced it will release 1 million barrels of oil per day from the SPR for six months. For this week, crude prices will likely remain volatile and could fluctuate if EIA’s next weekly report shows another decrease in total domestic stocks.

Drivers 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 – Knoxville ($4.05), Morristown ($4.02), Nashville ($3.99)
• Least expensive metro markets – Kingsport ($3.89), Johnson City ($3.92), Clarksville ($3.92)

Tennessee Gas Price Averages 

(Price per gallon of regular unleaded gasoline) 

	Monday	Sunday	Week Ago	Month Ago	One Year Ago
Tennessee	$3.969	$3.975	$4.022	$3.667	$2.692
Chattanooga	$3.924	$3.928	$3.962	$3.684	$2.653
Knoxville	$4.046	$4.050	$4.093	$3.636	$2.670
Memphis	$3.980	$3.987	$4.012	$3.605	$2.733
Nashville	$3.993	$3.999	$4.055	$3.775	$2.714
Click here to view current gasoline price averages