Tennessee moves to 7th least expensive market in the nation

14 December 2020

NASHVILLE, Tenn., (December 14, 2020) — The Tennessee gas price average remains relatively steady, up nearly two cents from last week. The Tennessee Gas Price average is now $1.92 which is four cents more than one month ago and 38 cents less than one year ago. 

“Gasoline demand is down 14% year-over-year. The numbers we are seeing as of late are very similar to readings from May when many states were locked down and demand was very low,” said Megan Cooper, spokeswoman, AAA - The Auto Club Group. “The fact is, Americans are filling-up less as states re-introduce travel restrictions and the pandemic lingers.”

Quick Facts

  • 91% of Tennessee gas stations have prices below $2.00
  • The lowest 10% of pump prices are $1.76 for regular unleaded
  • The highest 10% of pump prices are $2.20 for regular unleaded
  • Tennessee moved to the 7th least expensive market in the nation

National Gas Prices

Since the beginning of November, U.S. gasoline demand has softened. The Energy Information Administration’s (EIA) data shows demand measured at 8.7 million b/d for the week ending November 6. In their latest report, for the week ending December 4, demand measured at 7.6 million b/d. That is the lowest reading since the end of May and marks four weeks of straight decline. 

 

With softer gasoline demand, many states are seeing pump prices push cheaper, though at modest rates. Motorists are not seeing larger declines at the pump likely due to crude oil prices, which continue to trend around $46/bbl (WTI). However, crude prices have not pushed above this price point.

Regardless, amid low gasoline demand, high gasoline inventory and a resurgence in coronavirus cases, gas prices are not likely to see large increases. On the week, the national gas price average held steady at $2.16. That is also four cents less than last month and 40 cents cheaper than last year.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI decreased by 21 cents to settle at $46.57. Although crude prices ended with a loss for the day, due to market concerns that demand may dwindle in the coming winter months, prices increased slightly over the previous week amid continued market optimism that demand will recover in 2021 as Americans begin receiving coronavirus vaccines this week. More positive news about Americans receiving the emergency coronavirus vaccine will likely continue to bolster the domestic price of crude oil this week.

Tennessee Regional Prices

  • Most expensive metro markets –  Memphis ($1.98), Jackson ($1.95), Johnson City ($1.93)
  • Least expensive metro markets – Clarksville ($1.85), Chattanooga ($1.87), Cleveland ($1.88)

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

$1.917

$1.917

$1.900

$1.873

$2.301

Chattanooga

$1.865

$1.873

$1.867

$1.786

$2.219

Knoxville

$1.881

$1.878

$1.869

$1.842

$2.299

Memphis

$1.981

$1.982

$1.973

$1.915

$2.329

Nashville

$1.924

$1.925

$1.887

$1.895

$2.329

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.