By Katie Northcott, News Director
According to the American Automobile Association, the average price of gas in Tennessee rose 12 cents, last week.
Find more details in the press release below:
Gas prices across the state surged again last week, but began to ease over the weekend. Gas prices rose twelve cents, on average, over last week. The Tennessee Gas Price average is now $4.15 which is 25 cents more expensive than one month ago and $1.43 more expensive than one year ago.
“We saw our gas prices surge to a high of $4.21 per gallon last week, before easing and falling to today’s average of $4.15,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Market conditions shifted last week on renewed optimism around negotiations between the U.S. and Iran, but the market still remains highly volatile which makes it difficult to predict where gas prices will go this summer. Looking ahead to Memorial Day, it’s likely that Tennesseans will be seeing the most expensive Memorial Day gas prices since 2022.”
Memorial Day Outlook
A holiday road trip will cost significantly more at the gas pump this year. The Tennessee average price for gasoline is $4.15 per gallon, $1.40 more expensive than what drivers paid on Memorial Day last year. Last year, the Tennessee average price was $2.75 per gallon. This year is expected to be the most expensive Memorial Day at the gas pump since 2022, when Tennessee drivers paid an average of $4.27 per gallon for gasoline on Memorial Day.
AAA projects 795,000 Tennesseans will travel by car for Memorial Day weekend. The holiday travel period includes five days, beginning the Thursday before Memorial Day and ending on Monday. Click here to view the full AAA Memorial Day Travel Forecast.
National Gas Prices
Drivers are seeing another increase at the pump, with the national average for a gallon of regular gasoline rising seven cents for the second consecutive week to $4.52. Pump prices are now $1.39 higher than they were a year ago and have reached their highest level since 2022, when the national average peaked at $5.01 per gallon. While crude oil prices dipped below $100 per barrel amid ongoing negotiations to reopen the Strait of Hormuz, gasoline prices continue to face upward pressure from global supply concerns.
According to new data from the Energy Information Administration (EIA), gasoline demand decreased last week from 9.10 million b/d to 8.81 million. Total domestic gasoline supply decreased from 222.3 million barrels to 219.8 million. Gasoline production decreased last week, averaging 9.6 million barrels per day.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI fell $ 7.19 to settle at $95.08 a barrel. The EIA reports crude oil inventories decreased by 2.3 million barrels from the previous week. At 457.2 million barrels, U.S. crude oil inventories are about 1% above the five-year average for this time of year
Tennessee Regional Prices
- Most expensive metro markets – Nashville ($4.19), Knoxville ($4.18), Jackson ($4.17)
- Least expensive metro markets – Johnson City ($4.05), Kingsport ($4.10), Chattanooga ($4.11)
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