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NASHVILLE – Gas prices across Tennessee continued to drop last week, with the statewide average falling by seven cents to $2.71 per gallon. This price is a penny less than a month ago and 32 cents cheaper than this time last year, according to AAA – The Auto Club Group.

“Right now, we are experiencing the gradual seasonal decline at the pump that we would typically expect to see this time of year,” said Megan Cooper, spokeswoman for AAA. “Tennesseans are paying 32 cents less at the gas pump than they were a year ago. A seasonal decline in gasoline demand, alongside recent dips in crude oil prices, will likely help keep prices at the pump low in the short term.”

National Gas Prices

The national average for a gallon of gas decreased by three cents over the past week to $3.10, driven by low oil prices and modest domestic gasoline demand. According to the Energy Information Administration (EIA), gas demand slightly increased from 8.83 million barrels per day (b/d) to 9.15 million, while total domestic gasoline stocks dropped from 213.6 million barrels to 210.9 million.

As of  Monday, the national average stands at $3.10 per gallon, eight cents less than a month ago and 32 cents less than one year ago.

National Oil Market Dynamics

On Wednesday, the West Texas Intermediate (WTI) crude oil price rose by $1.40 to settle at $68.61 per barrel. U.S. crude oil inventories fell by 0.5 million barrels last week, with total inventories at 425.5 million barrels, approximately 4% below the five-year average for this season.

Tennessee Regional Prices

The most expensive metro markets in Tennessee include Johnson City ($2.82), Jackson ($2.78), and Memphis ($2.76). The least expensive are Chattanooga ($2.62), Clarksville ($2.65), and Cleveland ($2.67).