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NASHVILLE — Tennessee’s average gas price has dropped to $2.76 per gallon, making it three cents cheaper than a week ago, eight cents less than last month and 36 cents below the price this time last year, according to AAA – The Auto Club Group.

The Volunteer State now ranks third nationally for lowest average gas prices, trailing only Mississippi at $2.71 and Texas at $2.75.

“This week prices held steady across the state as oil and gasoline futures markets saw minimal movement,” said Stephanie Milani, spokesperson for AAA – The Auto Club Group.

National Trends
The national average for a gallon of regular gasoline dipped one cent over the past week to $3.14. That price matches levels last seen during the summer of 2021, the last time seasonal gas prices were this low.

Oil Market Dynamics
At the close of Wednesday’s formal trading session, West Texas Intermediate (WTI) crude fell 14 cents to settle at $66.38 per barrel. According to the U.S. Energy Information Administration, crude oil inventories dropped by 3.9 million barrels from the previous week. U.S. inventories now sit at 422.2 million barrels — roughly 8% below the five-year average for this time of year.