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NASHVILLE — Tennessee gas prices held steady over the past week, starting Monday with the same statewide average as the week before, according to AAA – The Auto Club Group.

The average price for a gallon of regular unleaded across the state sits at $2.72 — one cent less than a month ago and 52 cents cheaper than this time last year.

“Lower crude oil prices and gasoline demand are helping to make gas prices in the state over 50 cents cheaper than this time last year,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “This is great news for those planning a road trip for Memorial Day.”

Memorial Day Outlook

AAA projects that more than 948,000 Tennesseans will travel by car over Memorial Day weekend — an increase of more than 16,000 travelers compared to last year. In total, 84% of Tennessee travelers this holiday will hit the road.

Gas prices are expected to remain favorable for drivers, with the statewide average well below last year’s holiday prices. On Memorial Day 2024, the national average stood at $3.59 per gallon, while Tennessee’s average was $3.17.

“As summer unofficially begins and travel demand picks up, there’s a chance that pump prices will edge upward,” Cooper said. “Historically, gas prices tend to peak in the spring or summer before gradually easing as schools reopen in the fall.”

National Trends

Nationally, average gas prices dropped by three cents last week to $3.13 per gallon. According to the Energy Information Administration (EIA), gasoline demand fell from 9.09 million to 8.71 million barrels per day, while domestic gasoline supply ticked up slightly from 225.5 million to 225.7 million barrels. Gasoline production decreased, averaging 9.7 million barrels per day.

OPEC+ announced it will increase oil output in June, which could further ease crude oil prices and provide relief at the pump for summer travelers.

As of the latest data, the national average is 48 cents lower than one year ago.

Oil Market Update

West Texas Intermediate (WTI) crude settled at $58.07 per barrel last Wednesday, a decrease of $1.02 from the previous session. Crude oil inventories dropped by 2 million barrels, leaving total U.S. stockpiles at 438.4 million barrels — roughly 7% below the five-year average for this time of year, according to the EIA.

Tennessee Metro Area Averages

Most expensive metro markets:

• Nashville – $2.79

• Jackson – $2.77

• Johnson City – $2.75

Least expensive metro markets:

• Morristown – $2.61

• Clarksville – $2.64

• Chattanooga – $2.67

Drivers are encouraged to monitor gas prices ahead of travel and consider using fuel-savings tools and apps for the best local prices.