After an increase in prices at the pump ahead of Hurricane Laura, Tennessee gas prices are now trending lower. This week’s state average is two cents cheaper than last week. The Tennessee as price average is now $1.97 which is seven cents more than one month ago and 30 cents less than one year ago. Prices in Tullahoma continued to hover between $1.85 and $1.95 per gallon.
Over the Labor Day weekend, Tennessee motorists paid an average of $1.97 per gallon - that’s 30 cents less than last year’s holiday gas prices and the cheapest Labor Day gas prices in 16 years.
“Tennessee motorists saw the cheapest Labor Day at the gas pump since 2004,” said Megan Cooper, spokesperson, AAA - The Auto Club Group. “Traditionally, Labor Day marks the last big travel weekend of the summer. Moving into fall, we historically see a drop in demand and further savings at the pump. With demand already unseasonably low this summer due to the pandemic, pump prices should remain low.”
86% of Tennessee gas stations have prices below $2.00
The lowest 10% of pump prices are $1.79 for regular unleaded
The highest 10% of pump prices are $2.28 for regular unleaded
Tennessee shifted to the 9th least expensive market in the nation
National Gas Prices
Motorists saw plenty of savings at the pump from Memorial Day through Labor Day. The national gas price average during the unofficial start and stop to summer was $2.15 - the cheapest since 2004. Demand was decimated this summer, which ultimately meant increased supply and cheap gas prices. That trend continues. In its latest report, the Energy Information Administration (EIA) reported that demand dropped from 9.16 million b/d to 8.79 b/d. While gasoline stocks dropped by 4.3 million bbl to 234.9 million bbl, total supply is 5.2 million bbl more than this time last year.
At $2.21, today’s average is two cents less than last week, one penny more than last month and 35 cents cheaper than a year ago.
National Oil Market Dynamics
At the end of Friday’s formal trading session, WTI decreased by $1.60 to settle at $39.77 per barrel. The price of crude decreased in reaction to a decline in the stock market at the end of last week. The price decreased despite EIA’s weekly report revealing that total domestic crude inventories dropped by 9.4 million bbl, lowering total domestic stocks to 498.4 million bbl. For this week, crude prices could decline further if crude demand concerns arise amid another stock market downturn.