Tennessee remains the 9th least expensive market in nation
NASHVILLE, Tenn., (September 7, 2021) — The Tennessee gas price average rose five cents over last week in the aftermath of Hurricane Ida. Holiday travelers also found the most expensive Labor Day gas prices in seven years. The Tennessee Gas Price average is now $2.91 which is nearly two cents more than one month ago and nearly 94 cents more than one year ago.
“Historically, gas demand starts to decline in the fall as schools reopen and summer road trips end, which leads to less expensive gas prices,” said Megan Cooper, spokesperson, AAA - The Auto Club Group. “Despite the dip in demand, the national average is expected to remain above $3/gallon especially as crude oil continues to price on the higher end.”
National Gas Prices
Following Labor Day weekend and the remnants of Hurricane Ida, the national gas price average has stabilized at $3.18, which is just 3 cents more expensive on the week. The storm took about 13% of U.S. refinery capacity offline and while there are no firm re-start dates, refineries are expected to be back online this month.
Gasoline stock levels are currently at 227.2 million bbl, which is a healthy level. However, stock levels could tighten until refineries resume normal operations. Typically, a constraint on stocks would mean higher gas prices, but with demand expected to decrease going into the fall, price fluctuation should be minimal. Today’s national average is the same as last month, but 96 cents more than a year ago.
Motorists will welcome the cheaper gas prices following the most expensive summer at the pump in seven years.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 70 cents to settle at $69.29. Although crude prices ended the day lower, on the week crude prices were boosted by a weak dollar and the release of government data that showed weekly unemployment claims had fallen to the lowest level since the start of the COVID-19 pandemic. For this week, crude prices could continue to climb. Eighty-four percent of Gulf of Mexico oil production (1.526 million b/d) remains shuttered in the wake of Hurricane Ida, according to the Bureau of Safety and Environmental Enforcement. The downed production could put pressure on crude supplies and prices as the recovery and restoration process unfolds in the region.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
Tennessee Regional Prices
Tennessee Gas Price Averages
(Price per gallon of regular unleaded gasoline)