Tennessee is now the 5th least expensive market in the nation

22 August 2022

NASHVILLE, Tenn., (August 22, 2022) — Tennessee gas prices fell, on average, nearly six cents over last week. This brings Tennessee into the 10th consecutive week of state gas price average declines, and the cheapest state average since February 28.The Tennessee Gas Price average is now $3.44 which is 55 cents less expensive than one month ago and 59 cents more than one year ago.  

"After seven straight weeks of double-digit declines, the state gas price average is still falling, however, at a much slower pace this week, " said Megan Cooper, spokeswoman, AAA - The Auto Club Group. "This could be a sign that pump prices may soon begin to stabilize and level out. Another factor that could potentially affect pump prices is hurricane season. Hurricanes have the potential to disrupt oil production in the Gulf of Mexico, impacting large coastal refineries, and potentially impacting local pump prices."

Quick Facts

  • 71% of Tennessee gas stations have prices below $3.50
  • The lowest 10% of pump prices are $3.13 for regular unleaded 
  • The highest 10% of pump prices are $3.84 for regular unleaded
  • Tennessee is the 5th least expensive market in the nation

National Gas Prices

Stable global oil prices and modest domestic demand for gasoline led pump prices to fall a nickel in the past week to $3.90.

According to data from the Energy Information Administration (EIA), gas demand rose slightly from 9.12 million b/d to 9.35 million b/d last week, which is nearly identical to this time last year. Total domestic gasoline stocks decreased by nearly 5 million bbl to 215.7 million bbl. Although gasoline demand has risen and supplies have tightened, easing oil prices have helped lower pump prices. If oil prices edge lower, drivers will likely continue to see falling pump prices.

Today’s national average of $3.90 is 51 cents less than a month ago but 74 cents more than a year ago.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by 27 cents to settle at $90.77. Although crude prices increased at the end of the week due to EIA reporting that total domestic crude supply decreased by 7 million bbl to 425 million bbl, crude prices declined earlier in the week after U.S. housing data showed that homebuilding dropped to its lowest level in 1.5 years in July. Higher mortgage rates, alongside the rising costs of materials, played a role in decreasing the demand for new housing. Lower housing demand also pushed oil demand expectations lower. If crude demand expectations remain low this week, crude prices could decline further.

Drivers can find current gas prices along their route using the AAA TripTik Travel planner.

Tennessee Regional Prices 

  • Most expensive metro markets - Morristown ($3.67), Knoxville ($3.59), Memphis ($3.54) 
  • Least expensive metro markets - Clarksville ($3.24), Chattanooga ($3.31), Cleveland ($3.33) 


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

$3.443

$3.447

$3.501

$3.995

$2.851

Chattanooga

$3.311

$3.314

$3.397

$3.880

$2.755

Knoxville

$3.590

$3.601

$3.674

$4.189

$2.860

Memphis

$3.547

$3.549

$3.622

$4.072

$2.931

Nashville

$3.360

$3.364

$3.399

$3.947

$2.864

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 13 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.