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Tennessee gas prices drop 2 cents over past week; Coffee County prices below state average

The Tennessee gas price average declined slightly over last week, falling nearly two cents, on average. The Tennessee Gas Price average is now $2.87 which is a penny less than one month ago and 97 cents more than one year ago. 

In Coffee County, the average price for a gallon of regular unleaded is $2.84 as of Monday afternoon, which is 3 cents below the state average and well below the national average of $3.18.

“Leading up to Labor Day, pump price fluctuations are likely to continue due to high crude oil prices,” said Megan Cooper, spokesperson, AAA – The Auto Club Group. “Traditionally, gas demand typically drops considerably at the end of the summer which brings much needed relief at the pump to drivers in the fall and winter driving seasons.”

Quick Facts

· 92% of Tennessee gas stations have prices below $3.00
· The lowest 10% of pump prices are $2.66 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

New data from the Energy Information Administration (EIA) showed that gas demand and supply decreased. Moving from 9.78 million b/d to 9.43 million b/d last week, the latest demand measurement is 500,000 b/d lower than the rate at this time in 2019, signaling that summer gas demand is likely softening as the school year starts and concerns about transmission of COVID-19 grow as infection rates continue to increase. Additionally, total domestic gas stocks declined by 1.3 million bbl to 227.5 million bbl.

Although the drop in demand has helped to minimize pump price increases and stabilize the national average, elevated crude prices continue to keep pump prices high as the end of summer draws near.

The national average has held steady at $3.18 for seven days after reaching its highest point so far this year. Today’s national average is a penny less than a week ago, two cents more than a month ago and $1.01 more than a year ago. During the run-up to Labor Day weekend, pump prices will likely continue to fluctuate due to high crude prices. However, gas demand typically drops considerably after the final holiday weekend of summer, bringing much needed relief to American drivers when they fill-up this fall.

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