The Tennessee gas price average continues to decrease amid growing concerns about COVID-19 and has dropped 14 cents since this time last week. The Tennessee Gas Price average is now $1.89 which is nearly 34 cents less than one month ago and 54 cents less than one year ago.
"Typically gas prices start to trend more expensive at the beginning of spring, especially as motorists get out to enjoy the warmer weather and travel for spring break. That is not the case this year," said Megan Cooper, spokesperson, AAA - The Auto Club Group. "With Americans urged to stay at home and practice social distancing to slow the spread of coronavirus, we are seeing less traffic on the roadways which will ultimately drive down demand, increase gasoline supply and push pump prices less expensive for the foreseeable future."
- The TN Gas Price Average fell below $2 per gallon last week
- 86% of TN filling stations have sub-$2 gas prices
- TN gas prices have declined for 26 consecutive days for a total discount of nearly 34 cents per gallon
- Eight metro areas have seen double-digit decreases at the pump in the last week
National Gas Prices
With the national average at $2.12, pump prices are, on average, 50-cents less than this time last year. Crude oil is the biggest driver of the less expensive gas prices. In the last week, crude oil prices dropped to $22/bbl - a low not seen since 2002. Crude oil accounts for nearly 60% of the retail pump price. When crude is cheap, gas prices follow suit.
Motorists do not need to rush to the pumps to fill-up. Currently, there is ample U.S. gasoline supply and no disruption to distribution at gas stations.
Today's national average ($2.12) is cheaper on the week (-13 cents), month (-35 cents) and year (-50 cents).
National Oil Market Dynamics
At the close of Friday's formal trading session on the NYMEX, WTI decreased by $2.79 to settle at $22.43. COVID-19 and the crude price war between Russia and Saudi Arabia continue to push crude prices down. Moving into this week, crude prices will continue decreasing as the world grapples with how to contain the ongoing global public health crisis and associated economic challenges that could lead to a global recession. Until Saudi Arabia and Russia end their price standoff and the spread of COVID-19 ceases, domestic crude prices are likely to remain low.
Tennessee Regional Prices
- Most expensive metro markets - Morristown ($2.04), Johnson City ($1.99), Nashville ($1.98)
- Least expensive metro markets - Cleveland ($1.70), Memphis ($1.80), Chattanooga ($1.82)