Nashville, TN – Gas prices across Tennessee moved 13 cents higher over the last week, on average. Tennessee drivers paid $3.81 per gallon on Labor Day, the highest on record for the holiday. The Tennessee Gas Price average is now $3.80, which is 23 cents more expensive than one month ago and 96 cents more expensive than one year ago.
“Tennessee drivers paid the highest Labor Day gas prices on record this year, largely due to elevated crude oil prices and strong holiday travel demand,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group.
“While gasoline demand typically begins to ease after Labor Day, bringing lower pump prices, continued uncertainty in the oil market could delay that seasonal trend. For now, drivers can likely expect gas prices to remain volatile and higher than what we’d normally see this time of year,” Cooper stated.
National Gas Prices
Labor Day weekend travelers faced record-breaking gas prices for the holiday, paying an average of $4.15 per gallon, which surpassed the previous record set in 2012 when drivers paid $3.82 per gallon on Labor Day. Before yesterday, the national average has never been above $4.00 per gallon on Labor Day.
Today’s national average is $4.15, up 6 cents from last week. Continued volatility in the Strait of Hormuz has pushed crude oil prices in the $90.00 per barrel range. Even though gasoline demand decreases this time of year, typically bringing down gas prices, this year is different due to the high cost of crude oil.
According to new data from the Energy Information Administration (EIA), gasoline demand decreased last week from 9.04 million barrels per day to 8.92 million. Total domestic gasoline supply decreased from 206.8 million barrels to 205.7 million. Gasoline production stayed the same as last week, averaging 9.8 million barrels per day.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI rose 79 cents to settle at $91.01 a barrel. The EIA reports that crude oil inventories decreased by 4.5 million barrels from the previous week. At 424.5 million barrels, U.S. crude oil inventories are 1% above the five-year average for this time of year.
Tennessee Regional Prices
- Most expensive metro markets – Jackson ($3.91), Nashville ($3.86), Cleveland ($3.84)
- Least expensive metro markets – Clarksville ($3.67), Knoxville ($3.73), Johnson City ($3.75)
Tennessee Gas Price Averages
(Price per gallon of regular unleaded gasoline)
 |
Tuesday | Monday | Week Ago | Month Ago | One Year Ago |
| Tennessee | $3.809 | $3.814 | $3.675 | $3.577 | $2.841 |
| Chattanooga | $3.785 | $3.811 | $3.664 | $3.426 | $2.801 |
| Knoxville | $3.734 | $3.739 | $3.608 | $3.560 | $2.859 |
| Memphis | $3.842 | $3.837 | $3.750 | $3.686 | $2.828 |
| Nashville | $3.861 | $3.867 | $3.720 | $3.570 | $2.902 |
| Click here to view current gasoline price averages | |||||
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.
