Price decline thanks to domestic crude prices approximately $12 per barrel cheaper than last year

24 June 2019

NASHVILLE, Tenn., (June 24, 2019) Tennessee’s state average gas price is $2.35 per gallon for regular unleaded (making it the seventh lowest average price in the nation), which is the same as last week’s average, 19 cents less than one month ago and a quarter less than one year ago.

Today’s national average is $2.66, which is two cents less than last week and 18 cents less than a month and year ago.

“The national average dropped another two cents on the week even as U.S. gasoline demand hit its highest level since the Energy Information Administration (EIA) began publishing data in 1991,” said Stephanie Milani, Tennessee Public Affairs Director, AAA – The Auto Club Group. “Counterintuitively, as motorists drive demand to new heights, pump prices pushed even cheaper across the country on the week. This trend could entice motorists to travel more and even take some last minute road trips this summer.”  

Philadelphia Energy Solution’s Fire

At the end of last week, a massive fire took Philadelphia Energy Solution’s (PES) Philadelphia, the largest on the East Coast, offline, causing concern of what this could do to gas prices this summer. The incident will likely lead to reduced gasoline production at the refinery. However, gasoline from Canada, neighboring refineries, and the Colonial Pipeline are likely solutions to help backfill supply, meet demand and relieve any tightness in gasoline supplies as a result of reduced gasoline production at PES’ refinery and keep gas prices cheap throughout summer.

Crude Oil

At the close of Friday’s formal trading session on the NYMEX, WTI increased by 36 cents to settle at $57.43. When compared to this time last year, domestic crude prices are cheaper by approximately $12 per barrel. Crude prices climbed as tension rises in the Middle East. On Friday, it was reported that the U.S. was very close to executing a military strike against Iran as a result of the White House’s belief that Iran was responsible for shooting down a U.S. drone in the region, as well as last week’s alleged attack on two tankers in the Gulf of Oman. President Trump reportedly called off the strike minutes before it was to be engaged. Approximately 20% of global crude supplies flow through the Gulf of Omans. Moving into this week, if tensions between the U.S. and Iran escalate, the market will likely continue pushing global crude prices higher due to increased market fears that a military standoff between Iran and the U.S. could limit global supply and access to crude.

 Find Tennessee Gas Prices

State and metro averages can be found here


                                                            CURRENT AND PAST PRICE AVERAGES

                                                                                     Regular Unleaded Gasoline

Monday Sunday Week Ago Month Ago One Year Ago 2018 High Record High
National $2.662 $2.661 $2.685 $2.845 $2.847 $2.97 (5/26/2018) $4.11   (7/17/2008)
Tennessee $2.350 $2.350 $2.356 $2.542 $2.600 $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 9.6 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 59 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.