Tennessee moved to the 8th least expensive market in the nation

19 July 2021

AAA: TN Gas Price Average Holds Steady for Second Week in a Row

Tennessee moved to the 8th least expensive market in the nation

 

 

NASHVILLE, Tenn., (July 19, 2021) — The Tennessee gas price average held steady for the second week in a row. The Tennessee Gas Price average remains $2.88 which is two cents more than one month ago and 95 cents more than one year ago. 

“Crude oil prices declined last week after recent news of OPEC and its oil producing allies plan to gradually increase oil production beginning in August,” said Megan Cooper, spokesperson, AAA - The Auto Club Group. “Initial reports did lead to a reduction in crude oil pricing, but it’s unclear at this point where the crude market will go from here. For now, drivers can likely enjoy a break from rising prices at the pump.”

 

Quick Facts

  • 92% of Tennessee gas stations have prices below $3.00
  • The lowest 10% of pump prices are $2.69 for regular unleaded
  • The highest 10% of pump prices are $3.14 for regular unleaded
  • Tennessee moved to the 8th least expensive market in the nation

National Gas Prices

Since Memorial Day weekend, the national gas price average has increased 13 cents to $3.17. That is 98 cents more than a year ago, but 41 cents cheaper than this time in July 2014, when the national average was last above $3/gallon.

One of the primary reasons for more expensive gas prices this summer is high crude oil prices. However, last week crude prices fluctuated from a high of $75/bbl down to $71/bbl. News from the Organization of the Petroleum Exporting Countries (OPEC) over the weekend, that they have reached a deal to increase production in August, could give crude oil prices the potential to drop under $70/bbl. Regardless, AAA expects higher pump prices to be the norm throughout the summer.

While gas demand dipped to 9.28 million b/d, in the Energy Information Administration’s (EIA) latest report, the rate is strong for summer. The EIA report also shows gasoline stocks increased by 1 million bbl to 236.5 million. The jump in supply and drop in demand mitigated fluctuation to the national gas price average, which had a two-cent increase on the week. During the last seven days, 25 state averages increased by at least two cents, with 11 of those seeing jumps of a nickel or more.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by 16 cents to settle at $71.81. Although prices fluctuated at the end of the day because of a stronger dollar, crude prices declined on the week due to supply concerns and tension between Saudi Arabia and the United Arab Emirates that prevented OPEC and its allies from reaching a deal to increase crude production. However, under the compromise, which media reports confirmed over the weekend, OPEC will increase daily crude production by 400,000 barrels in August. The increase is expected to help lower crude prices, assuming it is not met with higher demand. Crude prices could decline this week in anticipation of the production increase.

Tennessee Regional Prices

  • Most expensive metro markets –  Memphis ($2.95), Morristown ($2.90), Johnson City ($2.90)
  • Least expensive metro markets – Cleveland ($2.81), Chattanooga ($2.81), Clarksville ($2.84)

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

$2.885

$2.886

$2.883

$2.856

$1.935

Chattanooga

$2.813

$2.817

$2.821

$2.766

$1.907

Knoxville

$2.886

$2.886

$2.884

$2.875

$1.885

Memphis

$2.945

$2.943

$2.930

$2.904

$1.976

Nashville

$2.889

$2.891

$2.902

$2.865

$1.974

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.