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NASHVILLE – Labor Day road trippers in Tennessee experienced the lowest holiday gas prices in three years, paying an average of $2.91 per gallon, the same as in 2021. Over the past week, gas prices in the state dropped by five cents on average, bringing the current Tennessee gas price average to $2.90. This is 19 cents lower than one month ago and 52 cents less than one year ago.

“Despite a busy Labor Day weekend for travel, drivers saw a nice break at the pump over the holiday weekend,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “With the summer driving season coming to a close, we’re now headed into an expected slump in gasoline demand over the next several months. While the overall seasonal trend this time of year is slowly declining pump prices, it’s important to note that we are still in hurricane season. Any hurricane threats, especially in the Gulf Coast refining areas, could impact pump prices.”

Holiday Travel Trends

As the summer travel season ends, Tennesseans are already planning for the year-end holidays. According to a new AAA survey, over half of residents (56%) plan to take an overnight vacation between Thanksgiving and New Year’s Day. Additionally, more than two in five Tennesseans (42%) typically begin booking their trips before September.

National Gas Prices

Nationally, gas prices continue to fall, though at a slower pace, with the average price per gallon now at $3.32, down three cents from last week. However, an increase in gas demand and a developing storm system in the Atlantic could affect this downward trend.

New data from the Energy Information Administration (EIA) shows that gas demand rose last week from 9.19 million barrels per day (b/d) to 9.30 million b/d, while domestic gasoline stocks fell from 220.2 to 218.4 million barrels.

Tennessee Regional Prices

• Most expensive metro markets: Jackson ($2.97), Memphis ($2.96), Nashville ($2.92)
• Least expensive metro markets: Chattanooga ($2.80), Clarksville ($2.81), Kingsport ($2.84)