The downward trend at the gas pump continues as Tennessee is headed into its fifth straight week of declines. Gas prices fell, on average, 18 cents over last week – the biggest weekly decline so far this year. The Tennessee Gas Price average is now $4.10 which is 50 cents less expensive than one month ago and $1.22 more than one year ago.
Prices in Coffee County were below the state average when prices peaked in June. But prices have been slower to come down, with the average price in Coffee County at $4.16, which is 6 cents above the state average and 32 cents below the national average of $4.52.
Gas is less expensive in Bedford County, where the average price per gallon is $3.88 and in Warren County at $3.93.
“Tennesseans are now seeing the cheapest prices at the pump in 10 weeks and it’s likely that prices will move even lower this week, ” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “While the oil market still remains volatile, significant drops in crude oil prices over the last few weeks alongside a steep decline in domestic gasoline demand are paving way for cheaper prices at the gas pump.”
- 41% of Tennessee gas stations have prices below $4.00
- The lowest 10% of pump prices are $3.74 for regular unleaded
- The highest 10% of pump prices are $4.52 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 15 cents since last week to $4.52. The steady decline is due to lower domestic demand for gasoline at the pump and a much lower global price for oil. The cost of a barrel of oil is in the mid-$90s, down from around $110 two weeks ago.
According to new data from the Energy Information Administration (EIA), gas demand dropped from 9.41 million b/d to 8.06 million b/d last week, while total domestic gas stocks increased by 5.8 million bbl. The decrease in demand and declining oil prices have helped push pump prices down. As these supply/demand dynamics hold, drivers will likely continue to see price relief at the pump.
Today’s national average of $4.52 is 46 cents less than a month ago and $1.36 more than a year ago.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by $1.81 to settle at $97.57. Crude prices increased slightly at the end of the week due to the market expecting crude supply to remain tight throughout summer. Tightening of supply is being driven by the potential for slower economic growth due to rising interest rates and inflation. Declining crude demand, due to reduced economic activity, could lead prices to follow suit. For this week, crude prices could rise if the market continues to believe supply will remain tight. Additionally, EIA reported that total domestic crude stocks increased by 3.3 million bbl to 427.1 million bbl last week, which is nearly 11 million bbl lower than the storage level last year.