Tennessee moves to the 7th least expensive market in the nation
NASHVILLE, Tenn., (Nov. 23, 2020) — Tennessee gas prices, on average, are nearly two cents cheaper heading into the Thanksgiving holiday. The Tennessee Gas Price average is now $1.85 which is nearly seven cents less than one month ago and nearly 46 cents less than one year ago.
“Typically, cheaper gas prices are an incentive for people to travel during a holiday weekend, but that is just not the case this year,” said Megan Cooper, spokeswoman, AAA - The Auto Club Group. “AAA forecasted a decrease in Thanksgiving travel year-over-year due to increasing COVID-19 positive case numbers, renewed quarantine guidelines and the latest CDC guidance. All of this has prompted Americans, who had plans to travel, to reconsider spending the holiday at home.”
Thanksgiving Travel + Gas Prices
Earlier this month, AAA released its Thanksgiving travel forecast, anticipating a 10% decline in travel this Thanksgiving compared to last year’s holiday. According to the report, 50.6 million Americans will take a road trip. More than 1.2 million of those would be Tennesseans. As the holiday approaches and Americans monitor the public health landscape, including rising COVID-19 positive case numbers, renewed quarantine restrictions and the latest CDC guidance, AAA expects the actual number of holiday travelers will be lower than forecasted.
"AAA urges those who decide to travel to do so safely," Cooper said. "Wear a mask, bring cleaning supplies, and do your research before leaving to understand if there are any travel restrictions or closures along your route or at your destination."
Visit AAA’s COVID-19 Travel Restrictions Map for the latest state and local travel restrictions. Use TripTik.AAA.com to plan your road trip and help determine which rest stops, gas stations, restaurants and hotels are open along your route.
Tennesseans are likely to see the lowest Thanksgiving Day gas prices since 2008, when gas prices were at $1.71 per gallon. At today’s state average of $1.85, gas prices in Tennessee are already 46 cents lower than Thanksgiving 2019.
National Gas Prices
At $2.10, this Thanksgiving’s national gas price average is shaping up to be the lowest since 2015. The holiday weekend average that year was a nickel cheaper at $2.05.
In its latest report, the Energy Information Administration (EIA) measured demand, for the week ending November 13, at 8.2 million b/d. That is not only a weekly decrease, but the lowest demand reading since mid-June. As demand dipped, U.S. gasoline stocks increased to nearly 228 million bbl. Americans can expect gas prices to continue to push less expensive heading into December.
National Oil Market Dynamics
At the close of Thursday’s formal trading session, WTI increased by 41 cents to settle at $42.15. Domestic crude prices increased last week amid growing market optimism that a vaccine for the coronavirus will be available by the end of 2020. However, as infection rates increase — alongside new measures imposed by states meant to decrease transmission of the virus — crude prices may decline this week due to falling demand. Additionally, the EIA’s weekly report revealed that total domestic crude inventories grew by 800,000 bbl to 489.5 million bbl last week, signaling that production may be outpacing demand.
Tennessee Regional Prices
Tennessee Gas Price Averages
(Price per gallon of regular unleaded gasoline)
About AAA - The Auto Club Group