AAA: Tennessee Gas Prices Drop Four Cents

Gas prices continue to decline across Tennessee, falling an average of four cents over the past week, according to AAA. The state average now sits at $2.56 per gallon — four cents cheaper than a month ago and 11 cents lower than this time last year. Tennessee currently ranks as the seventh least expensive gas market in the country.

Megan Cooper, spokeswoman for AAA – The Auto Club Group, said the downward trend is expected to continue into the end of the year due to weaker demand and lower crude oil prices.

Nationally, the average fuel price dipped below $3 per gallon last week for the first time in four years, dropping to $2.95 as of Tuesday. AAA notes that falling crude prices — hovering near $60 per barrel — along with seasonal winter blend production are helping drive costs down.

Energy Information Administration data shows gas demand has eased, slipping from 8.72 million barrels per day to 8.32 million, while domestic supply and production both increased.

The most expensive Tennessee metro markets include Jackson at $2.64, Memphis at $2.61, and Nashville at $2.59. The least expensive markets are Clarksville and Chattanooga at $2.46, followed by Cleveland at $2.49.