AAA: Tennessee gas prices rise 7 cents

NASHVILLE — After three weeks of declines, Tennessee’s state gas price average is 7 cents more expensive compared to last week. The Tennessee Gas Price average is now $2.77, which is 4 cents less than one month ago and 48 cents less than one year ago.

“Last week we saw our state gas price average fluctuate as high as $2.80, but then drop down over the weekend to $2.77,” said Megan Cooper, spokeswoman for AAA — The Auto Club Group. “Even with last week’s increases, drivers are still seeing prices at the pump nearly 50 cents cheaper than this time last year.”

National gas prices

The national average for a gallon of regular is a penny less than both a week ago and one month ago. An increase in demand — as the weather gets nicer and more people get out and about — is pushing prices up slightly. But at $3.14, the national average remains well below what drivers were paying this time last year. That’s because the price of crude oil is on the lower side at $62 a barrel compared to $82 a barrel one year ago.

According to new data from the Energy Information Administration (EIA), gasoline demand increased from 8.46 million b/d (barrels per day) last week to 9.41. Total domestic gasoline supply decreased from 234.0 million barrels to 229.5. Gasoline production increased last week, averaging 10.1 million b/d.

National oil market dynamics

At the close of Wednesday’s formal trading session, WTI fell $1.40 to settle at $62.27 a barrel. The EIA reports that crude oil inventories increased by 0.2 million barrels from the previous week. At 443.1 million barrels, U.S. crude oil inventories are about 5% below the five-year average for this time of year.

Tennessee regional prices

Most expensive metro markets — Nashville ($2.85), Johnson City ($2.82), Jackson ($2.79)

Least expensive metro markets — Morristown ($2.67), Clarksville ($2.69), Knoxville ($2.72)

Gas Price Survey methodology

AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.