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NASHVILLE — Gas prices across Tennessee continued their downward trend this week, dropping an average of nine cents. The state’s gas price average now stands at $2.82, making Tennessee the third least expensive market in the nation. This price is 20 cents lower than one month ago and 55 cents lower than the same time last year.

“Declining oil prices are helping to fuel the declines in pump prices that we’re seeing,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Unless oil prices reverse course, pump prices should move even lower this week. One factor we are keeping an eye on is Tropical Storm Francine in the Gulf. However, it’s too early to determine the full impact until the storm makes landfall.”

National Gas Prices

After remaining steady over the Labor Day weekend, the national average for a gallon of gas dropped by six cents to $3.27. The decrease is attributed to lower gas demand and a drop in oil prices, which have struggled to stay above $70 a barrel.

According to the Energy Information Administration (EIA), gas demand fell from 9.30 million barrels per day (b/d) to 8.93 million b/d last week. Meanwhile, domestic gasoline stocks rose slightly from 218.4 million barrels to 219.2 million barrels. Gasoline production also increased, averaging 9.7 million b/d. These factors are expected to keep prices at the pump on a downward trend.

On Monday, Sep. 9, the national average for a gallon of gas is $3.27, which is 18 cents lower than a month ago and 55 cents lower than last year.

National Oil Market Dynamics

West Texas Intermediate (WTI) crude fell by $1.14 to settle at $69.20 a barrel at the close of Wednesday’s formal trading session. The EIA reported a 6.9 million-barrel decrease in crude oil inventories, leaving U.S. inventories at 418.3 million barrels—about 5% below the five-year average for this time of year.

Tennessee Regional Prices

The most expensive metro areas for gas in Tennessee are Memphis ($2.90), Jackson ($2.89), and Knoxville ($2.87). The least expensive metro areas are Clarksville ($2.68), Chattanooga ($2.69), and Cleveland ($2.77).