Despite pump price jump, Tennessee remains 10th least expensive market in nation
NASHVILLE, Tenn., (January 11, 2021) — Pump prices are on the rise this week in Tennessee, jumping nine cents over last week. The Tennessee Gas Price average is now $2.13 which is 21 cents more than one month ago and 24 cents less than one year ago.
“Gas prices are rising as supply tightens and crude oil gets more expensive. Decreasing demand is outweighed by these other factors at the moment,” said Megan Cooper, spokeswoman, AAA - The Auto Club Group. “Last week crude oil pushed to the highest price since before the pandemic. If crude prices remain high, Americans can expect to pay more at the pump this month.”
National Gas Prices
At $2.31, the national gas price average is at its highest in 10 months. Pump prices have increased despite gas demand falling from 8.1 million b/d to 7.4 million b/d — the lowest level recorded since the end of May 2020, according to the Energy Information Administration’s (EIA) latest weekly report. Today’s average is six cents more than last week, 16 cents more than a month ago, but still cheaper than last year by 27 cents.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by $1.41 cents to settle at $52.84. Crude prices increased last week after Saudi Arabia announced that it would cut its crude production by 1 million b/d in February and March. Additionally, increasing crude prices were supported by EIA’s weekly report revealing that total domestic crude inventories decreased by 8 million bbl to 485.5 million bbl last week. If total domestic crude supply drops again this week, crude prices could continue to increase and push pump prices higher.
Tennessee Regional Prices
Tennessee Gas Price Averages
(Price per gallon of regular unleaded gasoline)
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.