Gas Prices Up by One Penny

Oct 05, 2020 at 11:44 am by WGNS

Tennessee gas prices, on average, are up only a penny from last week. The Tennessee Gas Price average is now $1.94 which is nearly four cents less than one month ago and nearly 42 cents less than one year ago. 

“Gasoline demand is likely to see some declines in the coming weeks as drivers traditionally take fewer road trips in the fall,” said Megan Cooper, spokesperson, AAA - The Auto Club Group. “Low demand combined with low crude prices will likely continue to push pump prices cheaper throughout the month.”

On average, September was the most expensive month at the pump for Tennesseans since March. The monthly average price in September was $1.95 per gallon. That’s three cents per gallon more than what drivers paid in August, yet 37 cents per gallon less than what drivers paid in September 2019. 

Quick Facts

  • 90% of Tennessee gas stations have prices below $2.00
  • The lowest 10% of pump prices are $1.76 for regular unleaded
  • The highest 10% of pump prices are $2.22 for regular unleaded
  • Tennessee is the 9th least expensive market in the nation

National Gas Prices

At $2.18, the national gas price average is at the cheapest start to the month of October since 2016. That average is the same as a week ago, four cents cheaper than the start of this past September and nearly 50 cents cheaper than last year. The national average held on the week as demand was mostly stable at 8.5 million b/d despite gasoline stocks increasing by 700,000 bbl.

National Oil Market Dynamics

At the close of Fridays formal trading session, WTI decreased by $1.67 to settle at $37.05. Crude prices dropped dramatically due to market concern about increasing coronavirus infections worldwide, which could lower crude demand. The drop in prices occurred despite the Energy Information Administrations weekly report revealing that total domestic crude inventories decreased by 2 million bbl to 492.4 million bbl. For this week, crude prices could decline further if demand concerns continue to worry the market. 

Tennessee Regional Prices

  • Most expensive metro markets –  Nashville ($1.98), Memphis ($1.96), Jackson ($1.95)
  • Least expensive metro markets – Chattanooga ($1.85), Kingsport ($1.88), Johnson City ($1.89)
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