Tennessee remains the 10th least expensive market in the nation

08 February 2021

NASHVILLE, Tenn., (February 8, 2021) — For the first time in four weeks, gas prices across the state held steady instead of increasing. Gas prices in Tennessee, on average, are the same as last week. The Tennessee Gas Price average is now $2.23 which is nearly 12 cents more than one month ago and nearly four cents more than one year ago. 

“Even though gas prices held steady across the state this week, it’s likely that Tennesseans can expect to pay more at the pump this month ” said Megan Cooper, spokesperson, AAA - The Auto Club Group. “Crude oil prices jumped $4 per barrel over last week and are the most expensive that we’ve seen since January 2020. It typically takes a few weeks to see the impact at the pump from changes in crude oil pricing, but given that crude accounts for more than 50% of retail price, it’s very likely that we will see pump prices begin to trickle upward in response.”

 

Quick Facts

  • 57% of Tennessee gas stations have prices below $2.25
  • The lowest 10% of pump prices are $2.05 for regular unleaded
  • The highest 10% of pump prices are $2.48 for regular unleaded
  • Tennessee remains the 10th least expensive market in the nation

National Gas Prices

At $2.46, the national gas price average is more expensive on the week (+4 cents), the month (+16 cents) and the year (+2 cents). This past Saturday, February 6, was the first time in 340 days the national average was more expensive than a year ago. Today, nearly two-thirds of all state gas price averages are more expensive year-over-year. Pump prices continue to climb, in part due to expensive crude oil and the market’s growing optimism that demand will increase amid the vaccination roll-out.

 

Up to $56/bbl, crude oil increased last week following Organization of the Petroleum Exporting Countries’ (OPEC) decision to keep their production cuts unchanged—a decision influenced by the ongoing impact of the pandemic on gasoline demand. Crude has not been priced this high since January 2020. Typically, it can take a few weeks before pump prices see the impact of more expensive crude, and with crude accounting for more than 50% of the retail price, increases are no doubt going to continue.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by 62 cents to settle at $56.85. Crude prices rose last week after OPEC and its production reduction agreement partners met to review compliance with their agreement to collectively reduce crude production by 7.2 million b/d. The group decided to hold the cuts steady and expects output to remain low this year since demand is forecasted to be lower than expected in 2021, due to ongoing crude demand concerns as the pandemic continues. Crude prices were also bolstered by the Energy Information Administration’s (EIA) latest report showing that total domestic crude inventories dropped by 1 million bbl to 475.7 million bbl. For this week, crude prices may continue to climb if the next weekly EIA report shows another reduction in total domestic crude inventories.

Tennessee Regional Prices

  • Most expensive metro markets –  Morristown ($2.26), Memphis ($2.26), Jackson ($2.26)
  • Least expensive metro markets – Chattanooga ($2.12), Cleveland ($2.14), Clarksville ($2.19)

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

$2.234

$2.235

$2.232

$2.116

$2.199

Chattanooga

$2.119

$2.126

$2.133

$2.105

$2.089

Knoxville

$2.241

$2.241

$2.248

$2.106

$2.171

Memphis

$2.256

$2.257

$2.225

$2.083

$2.245

Nashville

$2.252

$2.254

$2.267

$2.169

$2.245

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 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.