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NASHVILLE – Gas prices across Tennessee dropped an average of three cents over the past week, bringing the state average to $2.64 per gallon, according to AAA. This is six cents lower than one month ago and 12 cents cheaper than this time last year.

“While we may see prices fluctuate over the next two weeks, it’s very likely that Tennesseans taking a road trip over the holidays will encounter slightly cheaper gas prices than last year,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Right now, the state gas price average is 14 cents cheaper than it was at this time last year.”

Holiday Gas Price Outlook

Gas prices are expected to remain lower than last year’s levels. During the final weeks of 2023, Tennessee gas prices averaged $2.78 per gallon, ranging from $2.75 to $2.82. The current average of $2.64 per gallon reflects ongoing stability. Updated state and metro area gas prices are available at GasPrices.AAA.com.

Near-Record Holiday Travel Expected

AAA projects 2.7 million Tennesseans will travel 50 miles or more for the year-end holiday period (Dec. 21–Jan. 1). This marks an increase of 62,000 travelers compared to 2023, and just shy of the record set in 2019.

Road travel will dominate, with 93% of holiday travelers opting to drive. Over 2.5 million Tennesseans are forecasted to take road trips, a jump of 52,000 from last year, making it the second-highest year on record for road travel in the state.

National Gas Price Trends

The national average gas price rose one cent over the past week to $3.02 per gallon, maintaining proximity to the $3 mark for five weeks. Compared to last year, the national average is five cents lower.

Oil Market Dynamics

Crude oil prices rose during Wednesday’s trading session, with WTI settling at $70.29 per barrel. U.S. crude inventories decreased by 1.4 million barrels, leaving inventories 6% below the five-year average for this time of year.

Tennessee Regional Gas Prices

• Most expensive metro areas: Johnson City ($2.71), Jackson ($2.71), Memphis ($2.70)
• Least expensive metro areas: Clarksville ($2.54), Chattanooga ($2.55), Knoxville ($2.59)