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Tennessee gas prices jump to highest mark in 17 months

Tennesseans are finding the most expensive prices at the pump this week since September 2019 – up 12 cents over last week. The Tennessee Gas Price average is now $2.41 which is 21 cents more than one month ago and nearly 18 cents more than one year ago.
Prices in Coffee County are hovering near $2.34 per gallon on average, which is 7 cents below the state average. The national average is at $2.63.

“Gas prices surged last week in the aftermath of forced refinery shutdowns in the Gulf Coast due to last week’s winter weather,” said Megan Cooper, spokesperson, AAA – The Auto Club Group. “Similar to the effects that we see on refineries when hurricanes hit, any reports of extended downtime or significant supply impacts could cause another round of price increases at the pump. The good news is the nearly two dozen impacted refiners are expected to restart operations this week, if they haven’t already.”

Quick Facts

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· 85% of Tennessee gas stations have prices below $2.50
· The lowest 10% of pump prices are $2.21 for regular unleaded
· The highest 10% of pump prices are $2.71 for regular unleaded
· Tennessee remains the 9th least expensive market in the nation

National Gas Prices

Motorists are filling-up to some of the most expensive gas prices seen in over a year. With the forced shutdown of Gulf Coast and some Mid-West refineries due to last week’s winter weather, gasoline stocks have tightened and gas prices have skyrocketed. On the week, 66% of state averages spiked by double digits (10–22 cents), driving the national average up by 13 cents to $2.63. That is the most expensive national average since October 2019.

The Energy Information Administration (EIA) reports gasoline stocks sit at 257 million bbl. Just 2 million bbl short of year-ago, stock levels are relatively healthy. That will allow ample supply to get to impacted areas. EIA’s latest demand measurement of 8.4 million b/d is the highest reported since early November of last year. However, AAA expects that number to be lower in this Wednesday’s report as last week’s winter storm took motorists off the road.

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Gas prices are likely to be volatile until crude production is back to normal levels. Motorists can expect these more expensive prices to stick around, but large spikes are likely to subside.

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