AAA: TN gas prices jump 9 cents

Pump price increases across the state gained momentum last week, rising nine cents on average, according to AAA. The Tennessee gas price average is now $3.18 which is 24 cents more expensive than one month ago and five cents more than one year ago.

Prices continued to rise steadily in Cocke County also over the past week, jumping five cents to $3.09 per gallon from last week’s $3.04 average. Most stations were displaying prices above $3 for a gallon of regular, unleaded gasoline as of Monday.

“There’s still plenty of upward pressure on gas prices right now in the market, and with last week’s crude oil price increases it’s likely Tennesseans will see another round of increases at the pump this week,” said Megan Cooper, spokeswoman for AAA — The Auto Club Group. “Any time we see big oil price gains like we saw last week, it typically takes a week or two before those adjustments move through the retail market.”

Quick facts

69% of Tennessee gas stations have prices below $3.25The lowest 10% of pump prices are $2.95 for regular unleadedThe highest 10% of pump prices are $3.47 for regular unleadedTennessee is the 7th least expensive market in the nation

National gas prices

The national average for a gallon of gas rose seven cents since last week to $3.53. While domestic gas demand has been lackluster, rising oil prices helped push pump prices higher. The Midwest may see a bit of a price reprieve, as the large BP Whiting refinery in Indiana is back up and running after being down since February 1st.

According to new data from the Energy Information Administration (EIA), gas demand decreased slightly from 9.04 to 8.81 million b/d last week. Meanwhile, total domestic gasoline stocks dropped by 3.3 million bbl to 230.8 million bbl. Lower demand would typically contribute to pushing pump prices lower or slowing increases, but rising oil prices have pushed them higher instead.

Today’s national average of $3.53 is 27 cents more than a month ago and nine cents more than a year ago.

National oil market dynamics

At the close of Wednesday’s formal trading session, WTI decreased by $1.79 to settle at $81.68. Oil prices fell last week after the US Federal Reserve announced it was leaving interest rates unchanged, but it expects three rate cuts by the end of 2024. Additionally, the EIA reported that total domestic commercial crude stocks decreased by 2 million bbl to 445 million bbl last week.

Tennessee regional prices

Most expensive metro markets — Nashville ($3.25), Clarksville ($3.22), Jackson ($3.22)

Least expensive metro markets — Morristown ($3.07), Knoxville ($3.08), Kingsport ($3.16)