By Katie Northcott, News Director
On Tuesday, May 26, the American Automobile Association (AAA) reported that the average gas price in Tennessee had fallen five cents over the previous week.
Find more details in the press release below:
Gas prices across the state fell five cents, on average, over last week. The Tennessee Gas Price average is now $4.12 which is 39 cents more expensive than one month ago and $1.37 more expensive than one year ago.
“Gas prices surged to $4.21 last week, before falling to today’s average of $4.12. Those that took a road trip over the holiday weekend saw the most expensive Memorial Day gas prices in four years, with Tennesseans paying $4.14 per gallon for gasoline on Memorial Day,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Memorial Day is the unofficial start to the summer travel season. With an expected rise in gasoline demand and ongoing uncertainty in the oil price market, drivers can likely expect to see pump prices remain elevated for most of the summer.”
National Gas Prices
The national average for a gallon of regular is at $4.49, down 4 cents from last week and $1.32 higher than this time last year. With gasoline demand on the rise and the prolonged closure of the Strait of Hormuz, pump prices are likely to remain elevated as the summer travel season gets underway.
According to new data from the Energy Information Administration (EIA), gasoline demand increased last week from 8.75 million b/d to 8.76 million. Total domestic gasoline supply decreased from 215.7 million barrels to 214.2 million. Gasoline production decreased last week, averaging 9.3 million barrels per day.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI fell $5.89 to settle at $98.26 a barrel. The EIA reports crude oil inventories decreased by 7.9 million barrels from the previous week. At 445 million barrels, U.S. crude oil inventories are about 2% below the five-year average for this time of year.
Tennessee Regional Prices
- Most expensive metro markets – Knoxville ($4.16), Nashville ($4.16), Jackson ($4.14)
- Least expensive metro markets – Chattanooga ($4.00), Clarksville ($4.05), Johnson City ($4.07)
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