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NASHVILLE — The average gas price in Tennessee has dropped for the fourth consecutive week, falling eight cents from last week. The state average now sits at $2.74 per gallon, which is 31 cents cheaper than a month ago and 70 cents less than this time last year.

“Falling oil prices and gasoline demand continue to push pump prices lower across the state. We’re now seeing the cheapest pump prices since January,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “It’s likely that the momentum at the pump will continue this week, which means more savings for Tennessee drivers.”

National Gas Prices

Nationally, the average price of gas has decreased by seven cents over the past week to $3.20 per gallon. This decline is driven by low demand and decreasing oil costs. According to the Energy Information Administration (EIA), gas demand dropped from 8.93 million barrels per day (b/d) to 8.47 million b/d last week. Meanwhile, domestic gasoline stocks rose from 219.2 million to 221.6 million barrels.

On Monday, the national average of $3.20 per gallon is 23 cents lower than a month ago and 67 cents less than one year ago.

National Oil Market Dynamics

At the close of Wednesday’s trading session, West Texas Intermediate (WTI) crude oil rose $1.56 to settle at $67.31 per barrel. The EIA reported a 0.8 million barrel increase in crude oil inventories, bringing the total to 419.1 million barrels, about 4% below the five-year average for this time of year.

Tennessee Regional Prices

The most expensive metro markets in Tennessee are Memphis ($2.82), Knoxville ($2.81), and Jackson ($2.80). The least expensive are Chattanooga ($2.57), Cleveland ($2.62), and Clarksville ($2.67).