By Katie Northcott, News Director
According to the American Automobile Association (AAA), the average price of gas in Tennessee fell 12 cents, last week.
Find more details in the press release below:
Gas prices across the state are continuing to steadily decline, falling 12 cents, on average, over last week. The Tennessee Gas Price average is now $3.38 which is 64 cents less expensive than one month ago but 60 cents more expensive than one year ago.
“We’re continuing to see consistent declines at the pump, which comes at the perfect time for those planning a holiday road trip,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group.
Independence Day Gas Price Outlook
AAA projects 1.47 million Tennesseans will travel by car over July 4th week, nearly the same number as last year when 1.46 million travelers took road trips. Nearly 91% of Tennesseans traveling for Independence Day are expected to drive to their destinations.
Tennesseans are projected to see the most expensive Independence Day gas prices in four years. On Independence Day 2025, the state average for a gallon of regular gasoline was $2.75. Today’s Tennessee gas price average of $3.38 is 63 cents more expensive than what drivers paid last year, but $1.04 less expensive than what drivers paid in 2022 when gas prices were $4.42 per gallon. Click here to view the full Independence Day Travel Forecast.
National Gas Prices
Drivers are continuing to see relief at the pump as the national gas price average declines for the fifth consecutive week. Today’s national average is $3.86 per gallon. Crude oil prices have also continued to fall as the U.S. and Iran work toward a long-term deal. Despite lower prices, demand could rise as a record number of Americans prepare to travel for Independence Day weekend, with 85% planning to drive to their destinations.
According to new data from the Energy Information Administration (EIA), gasoline demand decreased last week from 9.21 million b/d to 8.77 million. Total domestic gasoline supply increased from 214.2 million barrels to 216.3 million. Gasoline production decreased last week, averaging 9.5 million barrels per day.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI fell $2.87 to settle at $70.34 a barrel. The EIA reports that crude oil inventories decreased by 6.1 million barrels from the previous week. At 412.1 million barrels, U.S. crude oil inventories are about 7% below the five-year average for this time of year.
Tennessee Regional Prices
- Most expensive metro markets – Memphis ($3.53), Jackson ($3.44), Johnson City ($3.44)
- Least expensive metro markets – Clarksville ($3.04), Chattanooga ($3.23), Morristown ($3.30)
