Tennessee gas prices began to stabilize over last week, providing drivers with a small respite from additional increases at the pump ahead of Memorial Day weekend.
Even with a bit of stabilization, drivers still paid the highest gas prices ever recorded for Memorial Day this year. The Tennessee Gas Price average is now $4.28 which is nearly 39 cents more expensive than one month ago and $1.41 more than one year ago.
Chattanooga, at $4.21 a gallon, and Cleveland at $4.25 a gallon, remain the lowest prices in the state.
"While drivers might have seen a small break in pump price increases this holiday weekend, we could be looking at the calm before the storm for gas prices," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "Crude oil prices surged to $115 per barrel last week alongside further tightening of domestic supplies. Renewed upward pressure on pump prices likely means additional increases in pump prices for drivers in the next couple of weeks."
- 45% of Tennessee gas stations have prices below $4.25
- The lowest 10% of pump prices are $4.08 for regular unleaded
- The highest 10% of pump prices are $4.57 for regular unleaded
A dip in gasoline demand provided drivers with a bit of stability at the pump, as the national average for a gallon rose less than three cents over the past week to reach $4.62. But this respite could be brief. Crude oil has moved above $115 a barrel due to fears of further global supply constraints caused by a European Union (EU) ban on Russian oil exports.
And domestic gas demand may again start to climb as drivers fuel up for the three-month-long summer travel season, which began this Memorial Day weekend. AAA forecast nearly 35 million travelers hit the road for Memorial Day. It’s the highest number since 2019, despite record prices at the gas pump.
According to Energy Information Administration (EIA) data, total domestic gasoline stocks decreased by 500,000 bbl to 219.7 million bbl last week. Gasoline demand also dipped from 9 million b/d to 8.8 million b/d, approximately 700,000 b/d lower than a year ago.
The softening of gas demand helped minimize price increases ahead of Memorial Day. However, gas demand may spike this week after drivers took to the roads for the holiday. But pump price increases could be limited if demand slows again following the holiday weekend.
Today’s national average for a gallon of gas is $4.62, which is 45 cents more than a month ago, and $1.58 more than a year ago.