Tennessee gas prices, on average, increased slightly over last week – only rising nearly 2 cents. The Tennessee gas price average is now $1.89, which is 20 cents more than one month ago and nearly 46 cents less than one year ago.
“Demand levels are likely to ebb and flow in the coming weeks as people continue to be cautious about travel,” said Megan Cooper, spokesperson for AAA-The Auto Club Group.
As a result, pump prices will likely continue to increase, but at a slower rate through the end of the month.
The highest 10% of pump prices are $2.16 for regular unleaded. Tennessee is the 9th least expensive market in the nation
The rate at which gas prices are increasing across the country is slowing. Thirty states only saw an increase of a penny or two, causing the national average to push more expensive by 3 cents to $2.13 since last Monday.
The slower rate can be tied to demand. Measuring at 7.87 million b/d, gasoline demand saw a small week-over-week decline and continues to be significantly lower (21%) compared to this week last year.
Monday’s national average is 19 cents more expensive than a month ago, but remains significantly cheaper – 53 cents – than a year ago.
At the end of Friday’s formal trading session, WTI increased by 91 cents to settle at $39.75 per barrel. Domestic crude prices increased at the end of last week amid increased market optimism regarding trade relations between the U.S. and China and greater focus on compliance with the production reduction agreement between the Organization of the Petroleum Exporting Countries (OPEC) and its partners, including Russia, which has worked to cut global crude production by 9.7 million b/d since May 1, 2020. It remains unclear if OPEC’s agreement will extend into August; it is currently set to expire at the end of July.
For this week, crude prices will likely remain volatile as the market assesses if global crude demand will decrease due to a spike in new coronavirus infections worldwide.
Tennessee’s most expensive metro markets areNashville ($1.94), Cleveland ($1.90), and Memphis ($1.89).
The state’s least expensive metro markets are Knoxville ($1.83), Clarksville ($1.85), and Chattanooga ($1.85).
Regular unleaded gas price averages in Tennessee were $1.89 on Monday, June 22, $1.87 a week ago, $1.69 a month ago, and $2.35 a year ago.