Motorists Seeing Pump Price Savings Thanks to Drop in Gasoline Demand and Large Build in Stocks

16 December 2019

NASHVILLE, Tenn., (Dec. 16, 2019) — Tennessee’s average gas price is $2.29, the same as yesterday, three cents lower than last week and last month, but 17 cents higher than last year. The South and Southeast are home to the cheapest gas price averages in the country with Tennessee ranking eighth lowest in the nation.

Today’s national average is $2.55, which is nearly a nickel cheaper than the beginning of the month. Today’s national average is two cents cheaper than last week, a nickel cheaper than last month, but 18 cents more expensive than this time last year.  

“As the weather turns colder, people tend to drive less and we see less gasoline demand,” said Stephanie Milani, Tennessee Public Affairs Director, AAA -- The Auto Club Group. “This is causing gas prices to be less expensive. The lead up to the year-end travel season could cause a spike in demand as a record-breaking 115.6 million Americans will travel this holiday season, but not enough to impact gas prices substantially," added Milani.

Year-End Travel Forecast available here.

Crude Oil Impact

At the close of Friday’s formal trading session on the NYMEX, WTI increased 89 cents to settle at $60.07. Crude prices jumped up after the U.S. and China announced that the world’s two largest crude consuming countries have reached a tentative “Phase One” trade agreement that reduces some U.S. tariffs in exchange for increased Chinese purchases of American farm goods. Since the start of the trade war between the two countries, crude prices have suffered because of reduced crude demand expectations as a result of the countries having to pay more for each other’s goods. If trade tensions continue to decrease, crude prices could increase again this week due to reduced market concerns that crude demand will decrease next year.

                                                           
                                                            
CURRENT AND PAST PRICE AVERAGES

                                                                                     Regular Unleaded Gasoline

Monday Sunday Week Ago Month Ago One Year Ago 2018 High Record High
National $2.553 $2.556 $2.573 $2.603 $2.378 $2.97 (5/26/2018) $4.11   (7/17/2008)
Tennessee $2.294 $2.299 $2.324 $2.326 $2.124 $2.73 (5/27/2018) $4.12   (9/15/2008)
Click here to view current gasoline price averages

Gas Price Survey Methodology

AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

About The Auto Club Group

The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, financial services and travel offerings to over 9.9 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. Visit AAA on the Internet at AAA.com.