The Tennessee gas price average fell below $4.00 per gallon on Friday for the first time since May 5, which prices in Chattanooga dropping nearly 18 cents, continuing a now six-week trend in lower prices.
The Tennessee Gas Price average is now $3.93 which is nearly 60 cents less expensive than one month ago and $1.06 more than one year ago.
"Tennessee is now in its sixth straight week for declining gas prices and drivers can likely expect prices at the pump to continue to drop yet again this week," said Megan Cooper, spokeswoman for AAA.
"We've seen another week of losses in the oil market and are continuing to see additional downward pressure on gas prices due to underwhelming gasoline demand figures - likely due to Americans changing their driving habits to offset rising gas prices."
Quick Facts
- 74% of Tennessee gas stations have prices below $4.00
- The lowest 10% of pump prices are $3.56 for regular unleaded
- The highest 10% of pump prices are $4.33 for regular unleaded
- Tennessee is the 6th least expensive market in the nation
National Gas Prices
Lackluster demand for gas and lower oil prices led to pump prices falling again, down 17 cents since last week to $4.35. The steady decline is due to low domestic demand for gasoline and oil prices that remain in the mid-$90s per barrel. The price of gas has now fallen every day since hitting a record $5.01 on June 14.
According to new data from the Energy Information Administration (EIA), gas demand rose from 8.06 million b/d to 8.52 million b/d last week. However, that rate is 800,000 b/d lower than last year and is in line with demand during the middle of July 2020, when COVID-19 restrictions curbed demand. Additionally, total domestic gasoline stocks increased by 3.5 million bbl to 228.4 million bbl, signaling that low demand led to growth in inventory last week. If gas demand remains low as stocks increase, alongside a continuing reduction in crude prices, drivers will likely continue to see pump prices decline.
Today’s national average of $4.35 is 63 cents less than a month ago and $1.20 more than a year ago.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by $1.65 to settle at $94.70. Crude prices declined last week as the market continues to worry that weak demand, which was expected to remain robust throughout the summer, could continue to push prices lower. A strengthening dollar also helped to push crude prices lower last week.
For this week, crude prices could continue to decline if demand concerns persist. Additionally, EIA reported that total domestic crude stocks decreased by 500,000 bbl to 426.6 million bbl, just over 13 million bbl lower than the storage level in mid-July 2021.
Tennessee Regional Prices
- Most expensive metro markets - Knoxville ($4.13), Morristown ($4.13), Memphis ($4.01)
- Least expensive metro markets - Clarksville ($3.72), Cleveland ($3.77), Chattanooga ($3.81)