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NASHVILLE – Gas prices across Tennessee dropped by an average of one cent over the past week, bringing the state average to $2.73 per gallon, according to AAA – The Auto Club Group. While prices are 10 cents higher than one month ago, they remain the same as this time last year.

“We’re still seeing some uncertainty in the oil market due to the recent winter weather and U.S. sanctions on Russian petroleum,” said Megan Cooper, spokeswoman for AAA. “This could place upward pressure on oil prices, but for now, the full effect on the market is unknown. Drivers can likely expect continued fluctuation at the pump this week.”

National Gas Prices

The national average for a gallon of gas remained unchanged over the past week, holding steady at $3.06. This is four cents higher than one month ago but a penny lower than one year ago.

The Energy Information Administration (EIA) reported that gasoline demand increased from 8.16 million barrels per day (b/d) last week to 8.48 million b/d. Meanwhile, domestic gasoline stocks rose from 231.4 million barrels to 237.7 million barrels, although gasoline production declined to an average of 8.9 million barrels daily.

In 2024, the average retail price for regular-grade gasoline was $3.30 per gallon, 21 cents less than in 2023. The U.S. continued its position as the world’s top crude oil producer from 2018 to 2023, setting a record of 12.9 million barrels per day in 2023.

Oil Market Dynamics

At the close of trading on Wednesday, West Texas Intermediate (WTI) crude oil fell 93 cents to settle at $73.32 per barrel. The EIA reported a decrease in U.S. crude oil inventories, which dropped by 1.0 million barrels to 414.6 million barrels last week. Current crude oil inventories are about 6% below the five-year average for this time of year.

Tennessee Regional Prices

• Most expensive metro markets: Memphis ($2.77), Nashville ($2.77), Jackson ($2.77)
• Least expensive metro markets: Chattanooga ($2.64), Cleveland ($2.65), Clarksville ($2.65)