Tennessee remains the eighth least expensive market in the nationTennessee remains the eighth least expensive market in the nation

24 August 2020

AAA: Tennessee Gas Prices Hold Steady 

Tennessee remains the eighth least expensive market in the nation

 

 

NASHVILLE, Tenn., (August 24, 2020) — The Tennessee Gas Price average is now $1.91 - a penny increase over last week. Today’s state average is down one penny from last month and nearly 39 cents cheaper than this time last year. 

“Gasoline stocks hit their lowest level since the pandemic began and demand dipped on the week, down to 8.6 million b/d,” said Megan Cooper, spokesperson, AAA - The Auto Club Group. “These decreases typically lead to cheaper pump prices, but this summer we’ve seen atypical gas price trends.”

 

Quick Facts

  • 91% of Tennessee gas stations have prices below $2.00
  • The lowest 10% of pump prices are $1.73 for regular unleaded
  • The highest 10% of pump prices are $2.22 for regular unleaded
  • Tennessee remains the 8th least expensive market in the nation

National Gas Prices

At $2.18, the national gas price average increased by one cent on the week. That is the same price as a month ago and 41 cents cheaper than a year ago.

 

The Energy Information Administration recorded gasoline stocks at their largest one-week draw since May. Total stocks fell by 4 million bbl down to 243.7 million bbl. Year-over-year, stocks are at a 10 million surplus while demand sits 1.3 million b/d less. U.S refinery utilization rates continue to hover at 80%.

 

Hurricane Watch 

 

This week the market is watching Tropical Storms Marco and Laura. Marco, whose force is decreasing and is expected to be a tropical depression late on Tuesday, is less of a concern. However, Laura is forecasted to move into the southeastern Gulf of Mexico and become a hurricane by early Tuesday.

 

According to the U.S. Department of Interior’s Bureau of Safety and Environmental Enforcement, approximately 58 percent, or 1.065 million b/d, of crude production in the Gulf of Mexico has been shuttered ahead of the storms and 114 (18%) platforms evacuated.

 

While gasoline stocks remain at a healthy level, if platforms and rigs are offline for an extended amount of time, supply could tighten and gas prices could be impacted. AAA will continue to monitor activity and provide related gas price updates.

 

National Oil Market Dynamics

At the end of Friday’s formal trading session, WTI decreased by 48 cents to settle at $42.34 per barrel. Crude prices were supported by growth in the strength of the U.S. dollar. Additionally, domestic crude prices decreased despite EIA’s weekly report revealing that total domestic inventories decreased by 1.6 million bbl last week, lowering total stocks to 512.5 million bbl. For this week, crude prices could increase, depending on the impact of Tropical Storms Laura and Marcos. If crude production continues to decrease and stays offline for an extended period, crude prices could increase as supply tightens. 

Tennessee Regional Prices

  • Most expensive metro markets –  Memphis ($1.96), Jackson ($1.96), Nashville ($1.94)
  • Least expensive metro markets – Chattanooga ($1.84), Cleveland ($1.85), Kingsport ($1.88)

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

$1.914

$1.914

$1.902

$1.925

$2.300

Chattanooga

$1.842

$1.848

$1.866

$1.893

$2.199

Knoxville

$1.886

$1.885

$1.825

$1.875

$2.272

Memphis

$1.961

$1.956

$1.947

$1.968

$2.327

Nashville

$1.942

$1.943

$1.952

$1.957

$2.374

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 60 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.