Tennessee Gas Prices Rise Slightly; State Remains Among Least Expensive

Gas prices in Tennessee increased by two cents on average last week, bringing the state’s average to $2.75 per gallon of regular unleaded. Prices are 10 cents lower than one month ago but three cents higher than a year ago. The increase drops Tennessee to the sixth least expensive market in the nation. Megan Cooper, spokeswoman for AAA – The Auto Club Group, says Tennessee prices fluctuated higher during the week but dipped slightly over the weekend. Barring major market changes, prices are expected to remain relatively stable through the short term, providing relief for fall travelers. Nationally, the average for a gallon of regular remains $3.13, unchanged from last week. Lower seasonal demand and the switch to winter-blend gasoline, which is cheaper to produce, are keeping prices down. Crude oil supply is strong, with OPEC+ expected to announce additional production increases in November. According to the Energy Information Administration (EIA), U.S. gasoline demand fell from 8.95 million barrels per day to 8.51 million, while total supply rose from 216.6 million barrels to 220.7 million. Gasoline production averaged 9.3 million barrels per day. U.S. crude oil inventories increased by 1.8 million barrels to 416.5 million barrels, about 4% below the five-year average. Tennessee metro gas prices vary, with Jackson ($2.81), Nashville ($2.79), and Memphis ($2.78) among the highest, and Clarksville ($2.66), Kingsport ($2.69), and Morristown ($2.69) among the lowest.