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NASHVILLE — Tennessee drivers saw gas prices fall an average of 7 cents over the past week, bringing the state average to $2.78 per gallon, according to AAA – The Auto Club Group.

Although the current average remains 7 cents higher than on June 1, it is slightly below the year-to-date high of $2.80 set earlier this spring. The decline follows a knee-jerk reaction to tensions in the Middle East that temporarily spiked oil prices.

“AAA expects a record 1.5 million Tennesseans to take a road trip for the July 4 holiday,” said Stephanie Milani, spokesperson for AAA – The Auto Club Group. “With state gasoline prices an average of 33 cents less than this time last year, drivers will save an average of $6 per fill-up.”

Nationally, gas prices have also eased. The average price for a gallon of regular gasoline dropped 4 cents to $3.18. Oil prices have returned to pre-conflict levels, contributing to the decline.

Data from the Energy Information Administration (EIA) shows gasoline demand rose last week from 9.29 million barrels per day to 9.68 million. The total U.S. gasoline supply dipped slightly from 230 million barrels to 227.9 million, while production held steady at 10.1 million barrels per day.

Oil market trends also played a role. West Texas Intermediate (WTI) crude closed last Wednesday up 55 cents at $64.92 per barrel. U.S. crude oil inventories fell by 5.8 million barrels and now sit at 415.1 million barrels—about 11% below the five-year seasonal average.

Average gas prices across Tennessee:

• Chattanooga: $2.66

• Knoxville: $2.77

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  Memphis: $2.83

• Nashville: $2.79