Dramatic jumps at the pump not likely for coming week

22 March 2021

NASHVILLE, Tenn., (March 22, 2021) — After multiple weeks of significant increases at the pump, Tennessee gas prices, on average, only increased about a penny over last week. The Tennessee Gas Price average is now $2.69 which is 28 cents more than one month ago and nearly 78 cents more than one year ago. 

“A dip in demand along with a simultaneous increase in supply and refinery utilization has contributed to slower movement in gas price increases,” said Megan Cooper, spokesperson, AAA - The Auto Club Group. “This week, motorists can expect fluctuation at the pump. However, large jumps are not likely for the majority of consumers.”

 

Quick Facts

  • 76% of Tennessee gas stations have prices below $2.75
  • The lowest 10% of pump prices are $2.48 for regular unleaded
  • The highest 10% of pump prices are $2.94 for regular unleaded
  • Tennessee ranks as the 12th least expensive market in the nation

National Gas Prices

After weeks of seeing almost daily increases, the national gas price average is showing signs of stability, holding steady at $2.88 for the last 5 days. Still, today’s average is the highest price since May 2019 and is more expensive on the week (+2 cents), month (+25 cents) and year (+74 cents).

 

In its latest weekly reports, the Energy Information Administration (EIA) shows demand decreased from 8.7 million b/d to 8.4 million b/d indicating that Americans are slowly returning to the road, likely due to more schools opening and spring break. Further, supply increased from 231.6 million bbl to 232 million bbl. While still one of the lowest levels of 2021, the increase in supply is promising especially alongside increasing refinery utilization rates, which jumped from 69% to 76%. That is just 7 percentage points away from utilization levels before February’s Texas winter storm.

 

Further aiding the more modest jumps at the pump in the last week is the lower price of crude oil. Crude averaged around $63/bbl, down $2/bbl from the previous week’s average of $65/bbl.

 

National Oil Market Dynamics

 

At the close of Friday’s formal trading session, WTI increased by $1.42 cents to settle at $61.42. Although the price of crude increased (Friday) after Saudi Arabia reported a drone attack on an oil facility that caused a fire but no injuries or damage, crude prices declined on the week due to market concern that demand may stumble as some countries restart coronavirus restrictions to curb growing infection rates. The decrease in crude prices was also supported by EIA reporting that total crude inventories increased by 2.4 million bbl to 500.8 million bbl. For this week, crude prices may decline further if demand concerns persist.

Tennessee Regional Prices

  • Most expensive metro markets –  Memphis ($2.74), Johnson City ($2.72), Jackson ($2.72)
  • Least expensive metro markets – Cleveland ($2.61), Clarksville ($2.63), Chattanooga ($2.63)

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

$2.688

$2.691

$2.679

$2.407

$1.907

Chattanooga

$2.632

$2.639

$2.627

$2.293

$1.826

Knoxville

$2.708

$2.707

$2.680

$2.377

$1.957

Memphis

$2.742

$2.740

$2.715

$2.488

$1.818

Nashville

$2.685

$2.689

$2.697

$2.442

$1.982

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.