Getting your Trinity Audio player ready...

NASHVILLE – Gas prices across Tennessee rose by an average of three cents over the past week, bringing the state’s average to $2.79 per gallon. This marks an increase of eight cents compared to both last month and the same time last year, according to AAA – The Auto Club Group.

“The recent surges in crude oil pricing are continuing to place upward pressure on the prices we see at the gas pump,” said Megan Cooper, spokeswoman for AAA. “The bitter cold temperatures we’re experiencing are also causing strong demand for winter heating fuel, which puts additional upward pressure on global oil prices. For now, drivers can expect to see continued fluctuation at the pump. The good news for Tennesseans is that so far, the fluctuations are minimal, and we are still one of the cheapest markets in the country for gas prices.”

National Gas Prices

Crude oil prices, now hovering around $80 per barrel, have pushed the national average for a gallon of gas up by five cents since last week to $3.12.

According to the Energy Information Administration (EIA), gasoline demand dropped slightly from 8.48 million barrels per day (b/d) to 8.32 b/d. Meanwhile, domestic gasoline stocks rose from 237.7 million barrels to 243.6 million barrels. Gasoline production also increased last week, averaging 9.3 million barrels daily.

On Tuesday, the national average price of $3.12 per gallon is eight cents higher than one month ago and five cents more than one year ago.

National Oil Market Dynamics

On Wednesday, West Texas Intermediate (WTI) crude oil rose by $2.54 to close at $80.04 per barrel. The EIA reported that U.S. crude oil inventories decreased by 2.0 million barrels last week, bringing total inventories to 412.7 million barrels. This figure is about 6% below the five-year average for this time of year.

Tennessee Regional Prices

Tennessee remains one of the most affordable states for gas, but prices vary by region:

• Most expensive metro markets: Johnson City ($2.88), Nashville ($2.83), Kingsport ($2.82)
• Least expensive metro markets: Clarksville ($2.70), Chattanooga ($2.73), Cleveland ($2.73)

As fluctuations in crude oil pricing and demand for heating fuel persist, drivers are encouraged to budget for continued price changes at the pump.