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Staff Report

NASHVILLE — Gas prices across Tennessee held steady for the second consecutive week, with the state average remaining at $2.72 per gallon. That’s three cents higher than one month ago, but 44 cents lower than this time last year.

“As we head into the holiday weekend, there’s the chance that gas prices may begin to fluctuate due to the expected increase in gasoline demand,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “However, even if prices do fluctuate higher, drivers should still spend significantly less at the pump for their holiday road trips this year compared to last.”

National Gas Prices

The national average for a gallon of regular gasoline is up 4 cents from last week, driven by rising crude oil prices and increasing demand. Although the typical seasonal increase in gas prices was delayed by lower crude prices earlier this year, market trends are now settling into a more traditional summer pattern. Despite the uptick, drivers are paying roughly 40 cents less per gallon than they were one year ago.

According to data from the Energy Information Administration (EIA), gasoline demand rose from 8.71 million barrels per day to 8.79 million. Meanwhile, domestic gasoline supply dropped from 225.7 million barrels to 224.7 million, and gasoline production declined, averaging 9.4 million barrels per day last week.

Oil Market Dynamics

On Wednesday, West Texas Intermediate crude oil settled at $63.15 a barrel, down 52 cents from the previous session. EIA data shows U.S. crude oil inventories rose by 4 million barrels last week, reaching 441.8 million barrels — about 6% below the five-year average for this time of year.

Tennessee Regional Prices

• Most expensive metro markets: Jackson ($2.78), Nashville ($2.77), Johnson City ($2.75)

• Least expensive metro markets: Cleveland ($2.59), Chattanooga ($2.64), Clarksville ($2.65)