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AAA: Tennessee gas prices drop for the first time in over a month

For the first time in five weeks the Tennessee gas price average moved less expensive. Over last week gas prices declined nine cents, on average. The Tennessee Gas Price average is now $3.19 which is 20 cents more expensive than one month ago and nearly six cents more than one year ago.  

The average price for a gallon of regular unleaded gasoline in Coffee County is $3.17, according to AAA. That price is 2 cents below the state average and 30 cents below the national average, which is $3.47.

Prices in Coffee County are marginally less expensive than surrounding counties. Grundy County average sits at $3.27, while Franklin and Moore counties are at $3.24 and Warren County $3.22. Bedford County boasts the least expensive gas nearby at $3.08.

“We’re starting to see pump prices move lower thanks to a sharp drop in the oil and gasoline futures markets,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Right now, a combination of domestic and global factors are working together to place downward pressure on pump prices. However, keep in mind that the market still remains volatile. This week, barring any big changes in the crude oil market, it’s likely Tennesseans will continue to see pump prices fluctuate lower.” 

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Quick Facts

  • 11% of Tennessee gas stations have prices below $3.00 
  • The lowest 10% of pump prices are $2.95 for regular unleaded 
  • The highest 10% of pump prices are $3.50 for regular unleaded
  • Tennessee is the 10th least expensive market in the nation

National Gas Prices

The national average for a gallon of gas barely budged over the past week, drifting lower by three cents to $3.47. Last week’s decision by OPEC+ to maintain current production levels and not make any cuts led to lower oil prices. But Friday’s blockbuster U.S. report of 517,000 jobs added in January, dropping the unemployment rate to a 54-year low of 3.4%, may have the opposite effect. Are recession fears fading, and could a healthier global economy lead to more demand for oil and higher prices?

According to data from the Energy Information Administration (EIA), gas demand rose from 8.14 million to 8.49 million b/d last week. Meanwhile, total domestic gasoline stocks increased by 2.6 million bbl to 234.6 million bbl. Despite rising gas demand, total supply growth has helped limit pump price increases.

Today’s national average of $3.47 is 18 cents more than a month ago and four cents more than a year ago.

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