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Crude oil costs and supply drops push prices higher

NASHVILLE — Tennessee’s average gas price climbed to $2.79 per gallon on Monday, reflecting a 6-cent increase from last week’s average of $2.73, according to AAA. Despite the uptick, prices remain below the national average of $3.15.

The rise in fuel costs is being attributed to a combination of higher crude oil prices and tightening fuel supplies amid global market fluctuations.

“Tennessee drivers are experiencing increased gas prices, driven by a rise in crude oil costs, which have climbed from approximately $67.00 to just over $68,” said Stephanie Milani, spokesperson for AAA – The Auto Club Group. “Remember, Tennesseans, that these prices can fluctuate unpredictably due to factors such as oil market instability and changes in seasonal demand.”

National Gas Prices Hover at 4-Year Summer Lows
Stability driven by ample supply despite recent uptick

Since last Monday, the national average price for a gallon of regular gasoline has ticked up by just 1 cent, reaching $3.15. Still, drivers across the country are benefiting from gas prices not seen this low during the summer since 2021.

AAA attributes the relative affordability to a healthy supply of gasoline in the market, despite slight increases in demand.

According to the latest Energy Information Administration (EIA) report, gasoline demand rose from 8.64 million barrels per day to 9.15 million barrels per day. Meanwhile, domestic gasoline supply declined from 232.1 million barrels to 229.5 million barrels.

Oil Prices Edge Up as Inventories Rise
Crude levels remain below seasonal average

At the close of last Wednesday’s formal trading session, West Texas Intermediate (WTI) crude increased 5 cents to settle at $68.38 per barrel. Despite the modest price bump, crude oil inventories in the U.S. rose by 7.1 million barrels from the previous week, totaling 426 million barrels. That level is about 8% below the five-year average for this time of year, according to the EIA.

EV Charging Prices Hold Steady
Electric rates remain unchanged at 36 cents per kilowatt-hour

For electric vehicle drivers, the national average cost per kilowatt-hour at public charging stations remained steady this week at 36 cents. EV owners can locate charging stations and price details using the AAA TripTik Travel Planner.