Despite surge in pump prices, Tennessee is the 9th least expensive market in nation

06 June 2022

NASHVILLE, Tenn., (June 6, 2022) —  Tennessee gas prices surged, on average, 23 cents over last week. Pump prices have, yet again, reached record highs across the state. The Tennessee Gas Price average is now $4.50 which is nearly 50 cents more expensive than one month ago and $1.62 more than one year ago.  

"We’re once again experiencing record high prices at the pump in Tennessee," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "One silver lining for Tennesseans is that despite the recent spike in prices, Tennessee is currently the 9th least expensive market in the nation. Another round of increases at the pump is likely this week as volatile crude oil prices alongside growing demand and tightening supplies continue to affect the market."

Quick Facts

  • 60% of Tennessee gas stations have prices below $4.50
  • The lowest 10% of pump prices are $4.31 for regular unleaded 
  • The highest 10% of pump prices are $4.77 for regular unleaded
  • Tennessee is the 9th least expensive market in the nation

National Gas Prices

The cost of a barrel of oil is nearing $120, nearly double from last August, as increased oil demand outpaces the tight global supply. Meanwhile, domestic gasoline demand rose last week in the wake of a robust Memorial Day weekend of travel. As a result, the national average for a gallon of gas surged 25 cents in one week to hit $4.86.

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 700,000 bbl to 219 million bbl last week. Meanwhile, gasoline demand grew from 8.8 million b/d to 8.98 million b/d as drivers fueled up for Memorial Day weekend travel. These supply and demand dynamics have contributed to rising pump prices. Coupled with volatile crude oil prices, pump prices will likely remain elevated as long as demand grows and supply remains tight.

Today’s national average for a gallon of gas is $4.86, which is 59 cents more than a month ago, and $1.81 more than a year ago.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by $2 to settle at $118.87. Crude prices rose last week after OPEC+ announced it would increase monthly production to 648,000 b/d in July and August instead of 400,000 b/d as previously planned. However, the market is still concerned that supply could remain tight as the European Union works to implement a 90 percent ban on Russian oil imports by the end of this year. Additionally, prices were boosted after EIA reported that total domestic stocks decreased by 5.1 million bbl to 414.7 million bbl. The current storage level is approximately 13.5 percent lower than a year ago, contributing to rising crude prices. For this week, crude prices could rise again if EIA’s next report shows another decrease in total domestic stocks.

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 - Morristown ($4.56), Clarksville ($4.55), Knoxville ($4.55)
  • Least expensive metro markets - Chattanooga ($4.41), Cleveland ($4.44), Kingsport ($4.50)


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

$4.505

$4.489

$4.274

$4.009

$2.884

Chattanooga

$4.411

$4.413

$4.205

$3.396

$2.814

Knoxville

$4.545

$4.523

$4.242

$4.033

$2.872

Memphis

$4.511

$4.484

$4.308

$4.027

$2.889

Nashville

$4.496

$4.490

$4.294

$4.039

$2.914

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.