Tennessee - Gas prices across the Volunteer State fell six cents, on average, over last week.The Tennessee Gas Price average is now $2.78 which is four cents more expensive than both one month and one year ago.  

"It seems that gas prices are beginning to ease - all metro areas in Tennessee are cheaper now than they were one week ago," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "As we head into Fall, cooler weather, lower gasoline demand, and an abundance of crude oil supply typically mean cheaper prices at the gas pump." 

Here in Murfreesboro over the past weekend, gas prices varied greatly from a low of $2.65 per gallon, all the way up to $2.99.

National Gas Prices

As drivers settle into their fall routines, gas demand is going down, and eventually, pump prices should follow suit. The national average for a gallon of regular is down two cents to $3.17. There remains an abundance of crude oil supply which is outweighing demand. The seasonal transition to winter-blend gasoline – which is cheaper to produce – is also beginning. 

According to new data from the Energy Information Administration (EIA), gasoline demand decreased from 9.11 million b/d last week to 8.50 million. Total domestic gasoline supply increased from 218.5 million barrels to 220 million. Gasoline production decreased last week, averaging 9.6 million barrels per day.  

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI rose $1.04 to settle at $63.67 a barrel. The EIA reports crude oil inventories increased by 3.9 million barrels from the previous week. At 424.6 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year. 

Tennessee Regional Prices 

• Most expensive metro markets - Nashville ($2.82), Memphis ($2.81), Jackson ($2.80) 
• Least expensive metro markets - Chattanooga ($2.71), Clarksville ($2.71), Morristown ($2.72)

Tennessee Gas Price Averages 
(Price per gallon of regular unleaded gasoline) 

Gas Price Survey Methodology

AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.