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Gas prices drop another 15 cents in Tennessee

Gas prices fell, on average, 68 cents in the month of July. As Tennessee heads into its seventh straight week of declining gas prices, the state gas price average is now less than a dollar more expensive than last year. The Tennessee Gas Price average is now $3.78 which is 68 cents less expensive than one month ago and 88 cents more than one year ago.  

Gas prices in Coffee County have fallen below the state average for the first time since prices began declining in June. The average price in Coffee County is now $3.76, 2 cents below the state average. Still, gas is much less expensive in neighboring Bedford County at $3.56.

“After the state average fell below $4 per gallon last week, this week brings the good news that all major metro areas in the state now also have averages below $4 per gallon,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Oil and gasoline futures made notable gains last week, which could potentially cause falling gas prices to stall and level out, but it’s too early to tell. For now, Tennesseans can breathe a sigh of relief as they head into the seventh straight week of falling gas prices.”

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Quick Facts

  • 90% of Tennessee gas stations have prices below $4.00 per gallon
  • All major metro areas in the state have metro averages below $4.00 per gallon
  • The lowest 10% of pump prices are $3.40 for regular unleaded 
  • The highest 10% of pump prices are $4.19 for regular unleaded
  • Tennessee is the 7th least expensive market in the nation 

National Gas Prices

The national average for a gallon of gas fell to $4.21, down 14 cents since last week. But a slight uptick in gas demand as more people fuel up could end the steady drop in daily pump prices.

According to new data from the Energy Information Administration (EIA), gas demand increased from 8.52 million b/d to 9.25 million b/d last week. The estimated rate is 80,000 b/d lower than last year, but it could slow pump price decreases if the trend holds. Additionally, total domestic gasoline stocks decreased by 3.3 million bbl to 225.1 million bbl, signaling that higher demand reduced inventory last week.

New survey data from AAA finds that drivers are making significant changes to cope with high pump prices. Almost two-thirds (64%) of U.S. adults changed their driving habits or lifestyle since March, with 23% making “major changes.” Drivers’ top three changes to offset high gas prices are driving less, combining errands, and reducing shopping or dining out.

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Today’s national average of $4.21 is 63 cents less than a month ago and $1.04 more than a year ago.

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