Pump prices are trending higher again as the state gas price average rose 11 cents over last week. The Tennessee Gas Price average is now $3.15, which is six cents more expensive than one month ago and 96 cents less than one year ago.
The average price for a gallon of regular unleaded gasoline in Coffee County is $3.23, according to AAA. That price is 8 cents above the state average and 24 cents below the national average, which is $3.47.
“Tennessee gas prices fluctuated higher early in the week last week, but leveled off over the weekend, ” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “As many Tennesseans gear up for spring break road trips, more fluctuation is expected at the pump. Increases in pump prices are common this time of year as spring vacations drive-up gasoline demand, while refineries conduct seasonal maintenance to prepare for the switch to summer blend gasoline.”
- 22% of Tennessee gas stations have prices below $3.00
- The lowest 10% of pump prices are $2.93 for regular unleaded
- The highest 10% of pump prices are $3.44 for regular unleaded
- Tennessee is the 9th least expensive market in the nation
National Gas Prices
The national average for a gallon of regular gasoline increased seven cents over last week to $3.47. However, this price pop could be short-lived, as demand and the global cost of oil have fallen recently.
According to new data from the Energy Information Administration (EIA), gas demand declined from 9.11 million to 8.56 million b/d last week. Meanwhile, total domestic gasoline stocks decreased by 1.1 million bbl to 238.1 million bbl last week. Although gas demand has declined, fluctuating oil prices have increased pump prices amid tighter supply.
Today’s national average of $3.47 is six cents more than a month ago but 85 cents less than a year ago.
National Oil Market Dynamics
At the close of last Wednesday’s formal trading session, WTI decreased by 92 cents to settle at $76.66. Crude prices decreased late last week due to weaker domestic oil demand expectations for 2023 after the Chair of the U.S. Federal Reserve indicated that additional interest rate increases are likely. The market is concerned that rising interest rates could tip the U.S. economy into a recession, which would lower oil demand amid reduced economic activity. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 1.7 million bbl to 478.5 million bbl last week.