AAA: Tennessee Gas Prices Hold Steady Ahead of the Holidays

Tennessee gas prices held largely steady over the past week, ending the weekend just one cent higher than last week, according to AAA. The statewide average now stands at $2.57 per gallon, making Tennessee the 12th least expensive gas market in the nation.

The current average is 12 cents lower than one month ago and six cents less than this time last year. AAA reports Tennesseans are seeing the lowest gas prices in four years.

AAA spokeswoman Megan Cooper said prices could fluctuate slightly during the holiday period but are expected to remain low through the end of the year, providing relief for drivers planning holiday travel.

Looking ahead to Christmas, Tennessee drivers are paying about the same as they did a year ago, but 12 cents less than Christmas Day 2024, when the state average was $2.69. If prices remain below that level, Tennessee would see its cheapest Christmas gas prices since 2020, when the average was $2.03 per gallon.

Nationally, the average gas price fell five cents over the past week to $2.90. Prices have remained below $3 since early December and are lower than last year’s holiday season average of $3.04.

The Energy Information Administration reported gasoline demand rose last week to 8.45 million barrels per day, while total domestic gasoline supply increased to 220.8 million barrels. Gasoline production declined slightly, averaging 9.6 million barrels per day.

In oil markets, West Texas Intermediate crude settled at $58.46 per barrel following a modest increase. U.S. crude oil inventories fell by 1.8 million barrels and remain about four percent below the five-year average.

Within Tennessee, the most expensive metro markets were Nashville at $2.64, Jackson at $2.61, and Cleveland at $2.59. The least expensive markets were Clarksville at $2.42, followed by Morristown and Chattanooga at $2.47.

Note: The Tennessee Weekly Gas Price Brief will pause for the holidays and resume Monday, January 5.