Tennessee ranks as the 9th least expensive market in the nation

28 June 2021

NASHVILLE, Tenn., (June 28, 2021) — The Tennessee gas price average fell a penny over last week as over 939,000 Tennesseans prepare to take a road trip for the upcoming Independence Day holiday weekend. The Tennessee Gas Price average is now $2.84 which is three cents less than one month ago and 89 cents more than one year ago. 

“Even though gas prices have been trending less expensive over the last two weeks, Tennesseans are expected to see the most expensive Independence Day gas prices since 2014,” said Megan Cooper, spokesperson, AAA - The Auto Club Group. 

 

Historical Tennessee Independence Day Gas Prices

2020

$1.94

2019

$2.46

2018

$2.61

2017

$2.00

2016

$2.06

2015

$2.53

2014

$3.45

 

Quick Facts

  • 93% of Tennessee gas stations have prices below $3.00
  • The lowest 10% of pump prices are $2.61 for regular unleaded
  • The highest 10% of pump prices are $3.10 for regular unleaded
  • Tennessee ranks as the 9th least expensive market in the nation 

National Gas Prices

At $3.09, the national gas price average is at its highest of the year and not stopping. That average will increase, possibly as much as another nickel, in the lead up to the Independence Day holiday weekend as AAA forecasts a record-breaking 43.6 million Americans will hit the road for a holiday getaway. This year’s Independence Day weekend is   defined as Thursday, July 1 – Monday, July 5.

While it is typical to see gas prices increase ahead of a holiday, especially during the peak summer driving season, pump price increases as of late have been noticeable.

Crude oil, and in turn gas prices, are more expensive compared to years past mostly due to three major factors: confidence in worldwide vaccination rollout, global oil demand spikes, and the easing of travel restrictions leading to optimism for leisure travel. Last week, crude oil sold at $74/bbl, the highest price in nearly three years. Motorists can expect little relief at the pump following the holiday. With crude oil prices likely to continue climbing, gas prices are most likely to see increases through the end of summer.

Today’s national average is more expensive on the week (+2 cents), the month (+5 cents) and the year (+92 cents). The latest weekly increase follows the latest data from the Energy Information Administration, which showed that gas demand increased from 9.36 million b/d to 9.44 million b/d, while total domestic gas stocks decreased by 3 million bbl to 240 million bbl.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased 75 cents to settle at $74.05. Crude prices increased last week due to optimism that vaccine rollout will continue to help crude demand recover. In fact, the price of crude crossed the $74 per barrel threshold and prices have not been at this level since October 2018. Additionally, crude prices were bolstered by EIAs latest report revealing that total domestic crude supplies decreased by 7.6 million bbl to 459.1 million bbl. For this week, another reduction in domestic crude supply could push prices up further after EIA’s next weekly report is released.

Tennessee Regional Prices

  • Most expensive metro markets –  Memphis ($2.91), Johnson City ($2.89), Morristown ($2.88)
  • Least expensive metro markets – Chattanooga ($2.74), Cleveland ($2.75), Clarksville ($2.78)

Tennessee Gas Price Averages

(Price per gallon of regular unleaded gasoline)

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Monday

Sunday

Week Ago

Month Ago

One Year Ago

Tennessee

$2.843

$2.842

$2.851

$2.871

$1.952

Chattanooga

$2.736

$2.736

$2.751

$2.786

$1.962

Knoxville

$2.867

$2.869

$2.873

$2.877

$1.918

Memphis

$2.905

$2.907

$2.900

$2.889

$1.958

Nashville

$2.841

$2.842

$2.857

$2.881

$2.000

Click here to view current gasoline price averages

 

 

About AAA - The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America with more than 14 million members across 14 U.S. states, the province of Quebec and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking and financial services, travel offerings and more. ACG belongs to the national AAA federation with more than 62 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety. For more information, get the AAA Mobile app, visit AAA.com, and follow us on Facebook, Twitter and LinkedIn.