For the first time since March, Tennessee motorists are finding prices at the pump over $2 per gallon. Tennessee gas prices, on average, continue to trend upward, rising another six cents over last week. The Tennessee Gas Price average is now $2.04 which is nearly 15 cents more than one month ago and 28 cents less than one year ago.
Tennesseans who took a holiday road trip for Christmas found the lowest gas prices in two years. Tennessee gas prices averaged $2.03 on Christmas Day. That put pump prices 28 cents less than Christmas 2019 and the lowest since 2018, when pump prices averaged $2.04 per gallon.
“December has seen the biggest pump price jump of any month this year, ending with a state average 14 cents higher than it began,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Despite low demand, pump prices are more expensive because crude oil has seen steady gains.”
• 50% of Tennessee gas stations have prices below $2.00
• The lowest 10% of pump prices are $1.86 for regular unleaded
• The highest 10% of pump prices are $2.29 for regular unleaded
• Tennessee moved to the 10th least expensive market in the nation
• Tennessee ranks 6th in the nation’s top 10 largest weekly increases
National Gas Prices
The Energy Information Administration (EIA) measures weekly gasoline demand at 8 million b/d, up from the previous week, while gasoline stocks decreased about one million bbl down to 237.7 bbl. Typically, this combination would result in cheaper gas prices, but with crude oil pricing at the highest levels since February, that is not the case.
Motorists can expect gas prices to rise in the coming week, but still be cheaper than the end of 2019.
Today’s national average is three cents more than last week, 13 cents more expensive than last month, but 32 cents cheaper than last year.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by 11 cents to settle at $48.23. Crude prices increased last due to a weak dollar and rising market optimism that coronavirus vaccines will help crude oil demand recover in 2021. However, as coronavirus infection rates continue to climb and travel restrictions increase this week, crude price gains could be capped.