Tennessee's state average reaches the highest price since March

28 December 2020

AAA: TN Gas Prices Rise Another Six Cents

Tennessee’s state average reaches the highest price since March

 

 

NASHVILLE, Tenn., (December 28, 2020) — For the first time since March, Tennessee motorists are finding prices at the pump over $2 per gallon. Tennessee gas prices, on average, continue to trend upward, rising another six cents over last week. The Tennessee Gas Price average is now $2.04 which is nearly 15 cents more than one month ago and 28 cents less than one year ago. 

Tennesseans who took a holiday road trip for Christmas found the lowest gas prices in two years. Tennessee gas prices averaged $2.03 on Christmas Day. That put pump prices 28 cents less than Christmas 2019 and the lowest since 2018, when pump prices averaged $2.04 per gallon. 

“December has seen the biggest pump price jump of any month this year, ending with a state average 14 cents higher than it began,” said Megan Cooper, spokeswoman, AAA - The Auto Club Group. “Despite low demand, pump prices are more expensive because crude oil has seen steady gains.”

Quick Facts

  • 50% of Tennessee gas stations have prices below $2.00
  • The lowest 10% of pump prices are $1.86 for regular unleaded
  • The highest 10% of pump prices are $2.29 for regular unleaded
  • Tennessee moved to the 10th least expensive market in the nation
  • Tennessee ranks 6th in the nation’s top 10 largest weekly increases

National Gas Prices

The Energy Information Administration (EIA) measures weekly gasoline demand at 8 million b/d, up from the previous week, while gasoline stocks decreased about one million bbl down to 237.7 bbl. Typically, this combination would result in cheaper gas prices, but with crude oil pricing at the highest levels since February, that is not the case.

Motorists can expect gas prices to rise in the coming week, but still be cheaper than the end of 2019.

Today’s national average is three cents more than last week, 13 cents more expensive than last month, but 32 cents cheaper than last year.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by 11 cents to settle at $48.23. Crude prices increased last due to a weak dollar and rising market optimism that coronavirus vaccines will help crude oil demand recover in 2021. However, as coronavirus infection rates continue to climb and travel restrictions increase this week, crude price gains could be capped. 

Tennessee Regional Prices

  • Most expensive metro markets –  Nashville ($2.07), Clarksville ($2.06), Memphis ($2.05)
  • Least expensive metro markets – Chattanooga ($1.95), Johnson City ($1.96), Kingsport ($1.97)

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

$2.038

$2.037

$1.975

$1.891

$2.321

Chattanooga

$1.947

$1.940

$1.904

$1.893

$2.236

Knoxville

$2.051

$2.049

$1.971

$1.856

$2.305

Memphis

$2.053

$2.051

$2.014

$1.943

$2.347

Nashville

$2.073

$2.074

$1.989

$1.896

$2.353

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.