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Tennessee sees lowest Labor Day gas prices in 16 years

After an increase in prices at the pump ahead of Hurricane Laura, Tennessee gas prices are now trending lower. Today’s state average is two cents cheaper than last week. The Tennessee Gas Price average is now $1.97 which is seven cents more than one month ago and 30 cents less than one year ago.

Over the Labor Day weekend, Tennessee motorists paid an average of $1.97 per gallon – that’s 30 cents less than last year’s holiday gas prices and the cheapest Labor Day gas prices in 16 years. In Coffee County, prices average at $1.95 per gallon as of Tuesday.

“Tennessee motorists saw the cheapest Labor Day at the gas pump since 2004,” said Megan Cooper, spokesperson, AAA – The Auto Club Group. “Traditionally, Labor Day marks the last big travel weekend of the summer. Moving into fall, we historically see a drop in demand and further savings at the pump. With demand already unseasonably low this summer due to the pandemic, pump prices should remain low.”

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Quick Facts

· 86% of Tennessee gas stations have prices below $2.00
· The lowest 10% of pump prices are $1.79 for regular unleaded
· The highest 10% of pump prices are $2.28 for regular unleaded
· Tennessee shifted to the 9th least expensive market in the nation

National Gas Prices

Motorists saw plenty of savings at the pump from Memorial Day through Labor Day. The national gas price average during the unofficial start and stop to summer was $2.15 – the cheapest since 2004. Demand was decimated this summer, which ultimately meant increased supply and cheap gas prices. That trend continues. In its latest report, the Energy Information Administration (EIA) reported that demand dropped from 9.16 million b/d to 8.79 b/d. While gasoline stocks dropped by 4.3 million bbl to 234.9 million bbl, total supply is 5.2 million bbl more than this time last year.

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At $2.21, today’s average is two cents less than last week, one penny more than last month and 35 cents cheaper than a year ago.

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