The Tennessee state average for gas prices set new record highs this weekend after increasing nearly 14 cents over the course of last week. The Tennessee Gas Price average is now $4.64 which is 47 cents more expensive than one month ago and $1.76 more than one year ago.
The price per gallon in Coffee County comes in at $4.65, which is a penny over the state average and 36 cents below the national average, which has hit an all-time high of $5.01.
The most expensive gasoline in the nation is out west, $6.43 in California.
“For the second week in a row, Tennesseans saw record-breaking prices at the pump, ” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Price fluctuation is likely again this week as the price of crude oil still remains high and increases in demand are expected. One bit of good news for Tennesseans, though, is that Tennessee moved up one spot this week to the 8th least expensive market in the nation.”
- 90% of Tennessee gas stations have prices below $4.75
- The lowest 10% of pump prices are $4.47 for regular unleaded
- The highest 10% of pump prices are $4.87 for regular unleaded
- Tennessee is the 8th least expensive market in the nation
National Gas Prices
The cost of a barrel of oil is over $120, nearly double last August’s price, as increased oil demand outpaces the tight global supply. Meanwhile, domestic gasoline demand remains robust as the summer driving season ramps up. As a result, the national average for a gallon of gas surged and is 15 cents more than a week ago, 58 cents more than a month ago, and $1.94 more than a year ago. Today’s national average is $5.01—an all-time high never seen since AAA began collecting pricing data in 2000.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 800,000 bbl to 218.2 million bbl last week. Meanwhile, gasoline demand grew from 8.98 million b/d to 9.2 million b/d as drivers continue to fuel up for the summer driving season, typically a time when gas demand increases. This dynamic between decreased supply and increased demand is contributing to rising prices at the pump. Coupled with increasing crude oil prices, this means that the price of gas will likely remain elevated for the near future.
But on the bright side, consumers will once again enjoy a tasty AAA gas price–related treat courtesy of Krispy Kreme Doughnuts. Running every Wednesday through Labor Day, Krispy Kreme will lower the price of a dozen Original Glazed donuts to the national average that AAA reports each Monday. A dozen glazed doughnuts typically cost around $12. This Wednesday’s dozen should cost $5.01, not including sales tax, and is available only in shop, drive-thru, or online pickup.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 84 cents to settle at $120.67. Although prices ended lower on Friday due to the rising value of the dollar, crude prices increased earlier last week in response to global supply concerns amid expected demand increases, particularly as China emerges from lockdowns that reduced crude demand. Crude prices have increased despite EIA reporting that total domestic stocks increased by 2.1 million bbl to 416.8 million bbl last week. However, the current storage level is still approximately 12 percent lower than a year ago, contributing to rising crude prices. Crude prices could rise further this week if EIA’s next report shows an inventory decline.
Drivers can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad, and Android. The app can also map a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more at AAA.com/mobile.