Rebounding crude oil prices could cause pump price declines to level off

28 March 2022

NASHVILLE, Tenn., (March 28, 2022) — For the second week in a row, the Tennessee gas price average saw a slight decline. Pump prices fell, on average, nearly two cents over the course of last week. The Tennessee Gas Price average is now $4.02 which is nearly 58 cents more expensive than one month ago and $1.35 more than one year ago.  

"After seeing strong drops two weeks ago in the price of crude oil, prices rebounded last week," said Megan Cooper, spokeswoman, AAA - The Auto Club Group. "With the price of oil hovering around $110 per barrel we have seen the declines at the pump begin to slow. If the price of oil continues to increase, pump prices will likely follow suit."

Quick Facts

  • 61% of Tennessee gas stations have prices below $4.00 
  • The lowest 10% of pump prices are $3.82 for regular unleaded 
  • The highest 10% of pump prices are $4.27 for regular unleaded

National Gas Prices

As the cost of a barrel of oil has remained near $110, the gas price decline has slowed. After hitting $4.33 on March 11, the national average for a gallon of gasoline is now $4.24, but only down a penny since last week. Domestically, gasoline demand is again defying seasonal trends and has dipped for the second straight week, perhaps due to higher pump prices and consumers altering their driving habits.

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks fell by 3 million bbl to 238 million bbl last week. Gasoline demand also decreased from 8.94 million b/d to 8.63 million b/d. The drop in gas demand is contributing to price decreases. However, the steady increase in the price of oil is slowing that decline. If oil prices continue to rise, pump prices will likely follow suit, reversing course from the current downward trend.

Today’s national average for a gallon of gas is $4.24, which is one cent less than a week ago, 63 cents more than a month ago, and $1.38 more than a year ago.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by $1.56 to settle at $113.90. Crude prices climbed after EIA’s weekly report revealed that total domestic crude stocks declined last week by 2.5 million bbl to 413.4 million bbl, approximately 18 percent lower than the level in mid-March 2021. The current inventory level highlights tightness in the market, contributing to rising prices. For this week, crude prices may fall on news that Shanghai is imposing new lockdown measures to curb COVID-19 transmission rates, which would likely reduce crude demand. According to the EIA, China became the world’s largest buyer of crude oil in 2017.

Drivers can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad, and Android. The app can also map a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more at AAA.com/mobile.

Tennessee Regional Prices 

  • Most expensive metro markets - Knoxville ($4.09), Morristown ($4.08), Nashville ($4.06)
  • Least expensive metro markets - Kingsport ($3.95), Johnson City ($3.95), Chattanooga ($3.96) 


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

$4.022

$4.025

$4.038

$3.444

$2.670

Chattanooga

$3.962

$3.965

$3.994

$3.448

$2.613

Knoxville

$4.093

$4.092

$4.116

$3.443

$2.680

Memphis

$4.012

$4.009

$4.002

$3.402

$2.730

Nashville

$4.055

$4.061

$4.078

$3.525

$2.671

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.