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Gas Prices May Rise With Tightening Supply

Posted on Wednesday, January 24, 2024 at 12:57 pm

Gas prices across Tennessee have moved less expensive for three straight weeks, making the Volunteer State the third cheapest place to buy fuel.

The Tennessee Gas Price average is now $3.36 which is eight cents less expensive than one month ago and nine cents more than one year ago.

“Gas prices are continuing to shift lower, despite a recent surge in crude oil prices over last week,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Increasing oil prices amid tightening supply may begin to push pump prices higher in the coming weeks. Drivers can likely expect to see continued volatility, as we typically see increases in pump pricing following big jumps in the price of crude oil. The silver lining for now is that Tennessee has the third least expensive state gas price average in the country.”

As of Monday, 26% of Tennessee gas stations had prices below $3.25. The lowest 10% of pump prices are $3.12 for regular unleaded. The highest 10% of pump prices are $3.73 for regular unleaded. Tennessee is the third least expensive market in the nation.

National Gas Prices The national average for a gallon of gas dipped a bit following the long Labor Day weekend, but rose two cents over the weekend to $3.83. According to new data from the Energy Information Administration (EIA), gas demand increased from 9.07 to 9.32 million b/d last week. Meanwhile, total domestic gasoline stocks dropped from 217.4 to 214.7 million bbl. Rising oil prices, higher gas demand, and tighter supply may push pump prices higher. On September 11, the national average of $3.83 is a penny less than a month ago but twelve cents more than a year ago.

The Marion Tribune – September 14, 2023