Tennessee ranks as the 9th least expensive market in the nation
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.
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 EIA’s 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
Tennessee Gas Price Averages
(Price per gallon of regular unleaded gasoline)
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