Tennessee remains the 10th least expensive market in the nation

25 January 2021

NASHVILLE, Tenn., (January 25, 2021) — After two weeks of significant increases at the pump, gas prices increased again in Tennessee, however at a much slower rate, rising only a penny over last week. The Tennessee Gas Price average is now $2.19 which is nearly 17 cents more than one month ago and nearly 10 cents less than one year ago. 

“Tennessee motorist continue to see gas prices increase, but at a much slower rate than the past few weeks,” said Megan Cooper, spokeswoman, AAA - The Auto Club Group. “Part of this is due to more stable crude oil prices throughout January. If demand continues another week of substantial increases, we could see pump prices get more expensive. However, downward pressure on crude oil prices due to a rise in coronavirus infections and travel restrictions could help to keep crude prices low and limit a substantial increase in pump prices.”

 

Quick Facts

  • 74% of Tennessee gas stations have prices below $2.25
  • The lowest 10% of pump prices are $2.03 for regular unleaded
  • The highest 10% of pump prices are $2.43 for regular unleaded
  • Tennessee remains the 10th least expensive market in the nation

National Gas Prices

According to the latest Energy Information Administration (EIA) measurement, gasoline demand jumped from 7.53 million b/d to 8.11 million b/d. Typically a significant increase in demand results in a comparable decrease in supply, ultimately translating to more expensive pump prices. Surprisingly, the recent large jump in demand had little impact on gasoline supply and minimal impact on pump prices. For the week ending January 20, gasoline supply saw a small decrease of 300,000 bbl. At 245 million bbl, supply levels lag behind last year’s reading at this time by 15 million bbl.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI decreased by 86 cents to settle at $52.36. Crude prices declined last week following market concern that crude demand may suffer as coronavirus infections rise and travel restrictions, which are meant to curb transmission of the virus, reduce crude demand. Additionally, EIA’s latest weekly report revealed that total domestic crude inventories rose by 4.4 million bbl to 486.6 million bbl, which also put downward pressure on crude prices. For this week, crude prices may continue to drop if market concern regarding demand continues to grow.

Tennessee Regional Prices

  • Most expensive metro markets –  Knoxville ($2.22), Nashville ($2.21), Morristown ($2.21)
  • Least expensive metro markets – Cleveland ($2.13), Chattanooga ($2.13), Clarksville ($2.14)

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

$2.198

$2.200

$2.187

$2.033

$2.297

Chattanooga

$2.133

$2.147

$2.129

$1.945

$2.197

Knoxville

$2.215

$2.217

$2.219

$2.046

$2.281

Memphis

$2.210

$2.203

$2.190

$2.040

$2.337

Nashville

$2.213

$2.215

$2.195

$2.072

$2.338

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.