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NASHVILLE – Tennessee gas prices increased by two cents on average over the past week, with the statewide average now at $2.70 per gallon, according to AAA – The Auto Club Group. That price remains nine cents lower than one month ago and 39 cents less than one year ago.

“Our gas prices continue to fluctuate across the state as many Tennesseans are heading into spring break this week,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “For those planning a road trip, the good news is that quite a few states now have average gas prices below $3 per gallon. We’re also seeing gas prices cheaper than one year ago—39 cents cheaper at both the state and national level.”

National Gas Prices

Despite increased demand, national gas prices dipped slightly this week, with the national average at $3.07 per gallon, about one cent lower than last week. As many travelers gear up for spring break road trips, drivers may be surprised to find gas under $3 per gallon in 29 states.

According to Energy Information Administration (EIA) data, gasoline demand increased from 8.87 million barrels per day (b/d) to 9.18 million b/d last week. Meanwhile, total domestic gasoline supply decreased from 246.8 million barrels to 241.1 million barrels, leaving supplies slightly below seasonal averages. Gasoline production also declined, averaging 9.6 million barrels per day.

National Oil Market Dynamics

At the close of Wednesday’s trading session, West Texas Intermediate (WTI) crude oil rose $1.43 to settle at $67.68 per barrel. The EIA reported a 1.4 million-barrel decrease in crude oil inventories from the previous week, bringing total U.S. crude oil inventories to 435.2 million barrels, about 5% below the five-year average for this time of year.

Tennessee Regional Prices

• Most expensive metro markets: Jackson ($2.76), Memphis ($2.75), Johnson City ($2.74)
• Least expensive metro markets: Chattanooga ($2.60), Morristown ($2.63), Clarksville ($2.63)

Gas prices are expected to remain volatile as demand increases during spring break travel. Tennesseans are encouraged to monitor fuel prices and plan accordingly.