Price fluctuation is likely, but on trend for this time of year
NASHVILLE, Tenn., (February 24, 2020) — The Tennessee gas price average has increased nearly three cents this week after strong declines earlier this month. The Tennessee Gas Price average is now $2.23 which is nearly three cents more than last week, 7 cents less than one month ago, and 4 cents more than one year ago. Tennessee is the 10th least expensive market in the nation.
“Gasoline prices are likely to fluctuate in the coming weeks, but not drastically, as the winter driving season nears its end and refineries undergo maintenance,” said Megan Cooper, spokesperson, AAA - The Auto Club Group. “This is the typical trend this time of year.”
Contributing to the increase in pump prices was the decrease in gasoline stocks and maintenance at regional refineries. Stocks drew by 277,000 bbl down to 92.9 million bbl. That is the second lowest measured stock level for the region this year. However, the good news is the latest EIA regional refinery utilization report shows a 2% bump to 92%. This could help to increase stock levels in the week ahead and help minimize any further price fluctuation.
National Gas Prices
More than half of all state gas price averages increased as much as three cents in the last week. The jumps were caused by a decrease in U.S. gasoline stocks and increases in demand. The Energy Information Administration’s (EIA) latest data show total domestic gasoline stocks decreased by 2 million bbl to 259.1 million bbl, while demand increased from 8.72 million b/d to 8.92 million b/d. Some of the decrease in stocks can be attributed to refinery maintenance.
Today’s national gas price average is $2.47, nearly 4 cents more expensive than last week, 6 cents cheaper than last month, and 8 cents more than one year ago.
National Oil Market Dynamics
At the close of Friday’s formal trading session on the NYMEX, WTI decreased by 50 cents to settle at $53.38. Although crude prices increased for the second week, they may not be able hold onto gains this week as concerns regarding the coronavirus continue to mount. The market continues to worry that reduced global travel and a slowdown in production in China, the world’s second largest crude consuming country, will reduce crude demand this year. Until it appears that the public health threat from the virus declines and China’s industrial sector recovers, crude prices are likely to continue facing downward pressure.
Tennessee Regional Prices
- Most expensive metro markets – Nashville ($2.27), Memphis ($2.27), Jackson ($2.27)
- Least expensive metro markets – Chattanooga ($2.12), Cleveland ($2.18), Johnson City ($2.18)
AAA GAS PRICE AVERAGES
(Price per gallon of regular unleaded gasoline)
|
|
Monday |
Sunday |
Week Ago |
Month Ago |
One Year Ago |
|
National |
$2.474 |
$2.474 |
$2.439 |
$2.534 |
$2.394 |
|
Tennessee |
$2.232 |
$2.233 |
$2.207 |
$2.304 |
$2.189 |
|
Click here to view current gasoline price averages |
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Gas Price Survey Methodology
AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a 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. ACG and its affiliates provide membership, insurance, banking, financial services, and travel offerings to over 13.5 million members across 13 U.S. states, the province of Quebec and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Carolina, North Dakota, Tennessee, Wisconsin, Puerto Rico, South Carolina and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. Visit AAA on the Internet at AAA.com.