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NASHVILLE – Gas prices across Tennessee dropped by an average of six cents last week, providing welcome news for travelers gearing up for the Thanksgiving holiday. The state’s average gas price now stands at $2.69 per gallon, 12 cents less than a month ago and 25 cents less than this time last year.

“Gas prices are moving lower across the state, which is great news for those planning road trips over the Thanksgiving holiday,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “It’s likely Tennesseans will see the cheapest Thanksgiving gas prices since 2020.”

Record Thanksgiving Travel Expected

AAA’s 2024 Thanksgiving Travel Forecast predicts record-setting travel numbers this year, with more than 1.9 million Tennesseans expected to travel 50 miles or more for the holiday. This marks an all-time high for Thanksgiving travel, surpassing last year’s numbers by more than 30,000 travelers.

Lower gas prices will benefit road travelers. During Thanksgiving 2023, the national average gas price was $3.26, while Tennessee drivers paid an average of $2.89. This year, the state average has dropped to $2.69, as of Monday.

For detailed national, state, and regional gas price averages, visit GasPrices.AAA.com.

National Gas Price Trends

The national average for a gallon of gas is nearing a significant milestone, with prices less than a dime away from dipping below $3 for the first time since May 2021. The current national average is $3.07, which is 12 cents less than a month ago and 25 cents less than a year ago.

According to the Energy Information Administration (EIA), gas demand increased last week, rising from 8.82 million barrels per day (b/d) to 9.38 million b/d. Meanwhile, total domestic gasoline stocks decreased from 211.3 million barrels to 206.8 million barrels, while production averaged 10.3 million barrels per day.

Regional Gas Prices in Tennessee

• Most expensive metro markets:
  • Johnson City: $2.77
  • Memphis: $2.74
  • Jackson: $2.74
• Least expensive metro markets:
  • Chattanooga: $2.61
  • Clarksville: $2.62
  • Morristown: $2.64

National Oil Market Dynamics

Crude oil prices are also influencing gas prices. At the close of Wednesday’s trading session, West Texas Intermediate (WTI) rose 31 cents to settle at $68.43 a barrel. The EIA reported a 2.1 million barrel increase in crude oil inventories, bringing the total to 429.7 million barrels, which is about 4% below the five-year average for this time of year.

For the full Thanksgiving Travel Forecast, visit AAA’s website.