Pump prices across Tennessee saw significant increases over last week, jumping 21 cents, on average, across the state. The Tennessee Gas Price average is now $3.39 which is 11 cents more expensive than one month ago and nearly 39 cents more than one year ago.
Last week the average cost for a gallon of gasoline in Coffee County was $3.15, this week it is $3.37 – which is two cents lower than the state average -, an increase of 22 cents.
Today’s national average of $3.91 is 19 cents higher than a month ago and 65 cents more than a year ago
“Last week, oil and gasoline futures were sent back to 5-week highs after OPEC and its allies announced plans to cut oil production next month by 2 million barrels per day, ” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “The U.S. price of oil also rose about 17% last week. Since oil is a key ingredient in gasoline, this raises the cost of producing, buying and selling the fuel. Therefore, it’s very likely that Tennesseans will see additional fluctuations at the pump over the course of this week.”
- 93% of Tennessee gas stations have prices below $3.50
- The lowest 10% of pump prices are $3.21 for regular unleaded
- The highest 10% of pump prices are $3.70 for regular unleaded
- Tennessee is the 9th least expensive market in the nation
National Gas Prices
OPEC+ recent announcement that the group of oil-producing nations would slash output by 2 million barrels per day led to the price of oil creeping above $90 a barrel for the first time in several weeks. A higher cost for oil usually means more expensive gasoline. Meanwhile, domestic demand increased as more drivers fueled up last week. The national average pump price for a gallon of gas rose 12 cents over the past week to hit $3.91.
According to new data from the Energy Information Administration (EIA), gas demand increased nationally from 8.83 million b/d to 9.47 million b/d last week. Total domestic gasoline stocks decreased significantly by 4.7 million bbl to 207.5 million bbl. High gasoline demand, amid tight supply, has led to higher pump prices nationwide.