Pump prices are on the rise this week in Tennessee, jumping 9 cents over last week. The Tennessee gas price average is now $2.13, which is 21 cents more than one month ago and 24 cents less than one year ago.
“Gas prices are rising as supply tightens and crude oil gets more expensive. Decreasing demand is outweighed by these other factors at the moment,” said Megan Cooper, spokeswoman for AAA-The Auto Club Group. “Last week, crude oil pushed to the highest price since before the pandemic. If crude prices remain high, Americans can expect to pay more at the pump this month.”
The lowest 10% of pump prices are $1.96 for regular unleaded. The highest 10% of pump prices are $2.40 for regular unleaded.
Tennessee remains the 10th least expensive market in the nation. Tennessee ranks 5th in the nation’s top largest weekly increases.
At $2.31, the national gas price average is at its highest in 10 months. Pump prices have increased despite gas demand falling from 8.1 million b/d to 7.4 million b/d, the lowest level recorded since the end of May 2020, according to Energy Information Administration’s (EIA) latest weekly report. Monday’s average is 6 cents more than last week, 16 cents more than a month ago, but still cheaper than last year by 27 cents.
By EIA measurements, U.S. gasoline supply sits at 241 million bbl. While this is the healthiest measurement since August 2020, it is 10 million bbl less than the start of 2020 (251 million bbl) when COVID-19 concerns were minimal. This year-over-year deficit, combined with lower refinery production rates and ongoing refinery maintenance, is pushing crude and gas prices more expensive.
At the close of Friday’s formal trading session, WTI increased by $1.41 cents to settle at $52.84. Crude prices increased last week after Saudi Arabia announced that it would cut its crude production by 1 million b/d in February and March.
Additionally, increasing crude prices were supported by EIA’s weekly report revealing that total domestic crude inventories decreased by 8 million bbl to 485.5 million bbl last week. If total domestic crude supply drops again this week, crude prices could continue to increase and push pump prices higher.
Tennessee’s most expensive metro markets are Nashville ($2.18), Jackson ($2.14), and Morristown ($2.14).
The state’s least expensive metro markets are Chattanooga ($2.09), Kingsport ($2.09), and Johnson City ($2.11).
Regular unleaded gas price averages in Tennessee were $2.13 on Monday, Jan. 11, $2.04 a week ago, $1.92 a month ago, and $2.37 a year ago.