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Gas prices stay steady in Tennessee; Coffee County below state and national average

The Tennessee gas price average held steady over last week. The Tennessee Gas Price average is now $2.89 which is the same price as one month ago and 99 cents more than one year ago. The Coffee County average is $2.86 which puts the county 3 cents below the state average and 33 cents below the national average.

“We continue to see very robust gasoline demand for the peak summer driving season,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “The latest demand rate was 2% higher than the same time period in 2019, while gasoline stocks are about 1% below.”

Quick Facts

· 91% of Tennessee gas stations have prices below $3.00
· The lowest 10% of pump prices are $2.71 for regular unleaded
· The highest 10% of pump prices are $3.17 for regular unleaded
· Tennessee remains the 9th least expensive market in the nation

National Gas Prices

Crude oil prices dropped below $70/bbl at the end of last week in reaction to concerns about the delta variant, growing COVID case numbers and the possibility of potential lockdowns. While crude is a little cheaper, gas prices are still positioned to remain high in August.

Today’s national average is $3.19. That is the most expensive gas price average of the year as well as $1.02 more than a year ago, a nickel more than a month ago and two cents more than a week ago. Pump prices fluctuated across the county last week with states seeing as much as a nine-cent jump to a seven-cent decrease. The variation in prices is partly attributed to the U.S. seeing an increase in demand and decrease in stocks, according to the Energy Information Administration (EIA).

August can be a busy month at the pump with school starting and others taking last minute summer trips. AAA offers these daily driving tips to help save on gas:

· Slow down and drive the speed limit. On the highway, aerodynamic drag causes fuel economy to drop off significantly as speeds increase above 50 mph.
· Avoid extended idling to warm up the engine. It is unnecessary and wastes fuel.
· When approaching a red light or stop sign, take your foot off the gas early and allow your car to coast down to a slower speed until it is time to brake.
· Accelerate smoothly with light to moderate throttle. This allows the automatic transmission to upshift into higher gears sooner, reducing engine rpm and saving fuel.
· AAA members can save at the pump by joining the Fuel Rewards at Shell program at Members save 30 cents per gallon on their first fill-up when they join between now and August 31, 2021. As part of the Fuel Rewards program, AAA Members earn Gold Status ongoing and save five cents per gallon every day on each individual gas purchase of up to 20 gallons from participating Shell stations with no minimum fill ups. 

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI decreased by 81 cents to settle at $68.28. A stronger dollar and market concern about the impact of new coronavirus infections on crude demand pushed prices lower at the end of last week. Crude prices also declined after the EIA’s latest report showed that total domestic crude stocks increased by 3.6 million bbl to 439.2 million bbl. For this week, crude prices could decrease further if the market continues to worry that crude demand will decline as restrictions are imposed to halt transmission of COVID-19.

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