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NASHVILLE – Gas prices across Tennessee reversed course last week, falling by an average of five cents. The Tennessee gas price average is now $3.11, which is seven cents more expensive than one month ago and two cents more than one year ago.

“Despite expected upward pressure on gas prices, we actually saw our gas prices move less expensive over last week here in Tennessee,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “If market conditions persist, it’s likely that we could see our gas prices hold steady again this week. As of today, Tennessee has the third least expensive state gas price average in the country.”

National Gas Prices

The national average for a gallon of gas rose two cents from last week, reaching $3.52. This slight increase occurred despite Hurricane Beryl impacting the coast of Texas, a record number of July 4th car travelers, and oil costs hovering above $80 per barrel.

According to new data from the Energy Information Administration (EIA), gas demand dipped from 9.42 million barrels per day (b/d) to 9.39 million b/d last week. Meanwhile, total domestic gasoline stocks fell from 231.7 million barrels to 229.7 million barrels, while gasoline production increased, averaging 10.3 million barrels daily. Tepid gasoline demand and fluctuating oil costs may lead to some short-term stability in pump prices.

On July 15, the national average was $3.52, seven cents more than a month ago but four cents less than a year ago.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, West Texas Intermediate (WTI) rose 69 cents to settle at $82.10 a barrel. The EIA reports that crude oil inventories decreased by 3.4 million barrels from the previous week. At 445.1 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.

Drivers can find current gas prices along their route using the AAA TripTik Travel planner.

Tennessee Regional Prices

• Most expensive metro markets: Jackson ($3.17), Nashville ($3.14), Johnson City ($3.14)
• Least expensive metro markets: Chattanooga ($3.04), Clarksville ($3.04), Knoxville ($3.05)