Tennessee Gas Prices Drop Below $4 Per Gallon

Gas prices in Tennessee have dropped 10 cents in the past week, bringing the state average to $3.93 per gallon. This is a welcome relief for drivers after record highs in September. However, prices remain 12 cents higher than a month ago and $1.18 more expensive than last year. Megan Cooper, spokeswoman for AAA - The Auto Club Group, noted that crude oil prices staying low could lead to further decreases at the pump.

Despite the recent drop, Tennessee drivers are still paying significantly more to fill up their tanks. The average cost to fill a 15-gallon tank is now nearly $59, compared to $41 at the same time last year. Nationally, gas prices have also decreased, falling 11 cents to $4.36 per gallon. This follows a record-setting September when the monthly average was $4.33, surpassing the previous September record of $3.83 set in 2023.

Data from the Energy Information Administration (EIA) shows a decline in gas demand and production. Gas demand dropped from 8.84 million barrels per day to 8.68 million, while gasoline production decreased from 9.59 million barrels to 9.46 million per day. Despite these declines, crude oil prices have slightly increased, with WTI settling at $90.42 per barrel.

Regionally, the most expensive metro markets in Tennessee are Jackson ($4.11), Memphis ($4.06), and Nashville ($3.93). The least expensive markets are Cleveland ($3.80), Clarksville ($3.81), and Chattanooga ($3.82). Neighboring cities like Nashville, Memphis, and Chattanooga have also seen slight decreases in gas prices from the previous week.