TN Gas Prices Plummet 11 Cents Amid Crude Oil Price Drop

Tennessee gas prices have decreased by 11 cents over the past week, according to data from AAA - The Auto Club Group. As of August 10, 2026, the state's average price for a gallon of regular gasoline is $3.55. This marks a decrease of five cents compared to one month ago and an increase of 77 cents compared to this time last year.

AAA spokesperson Megan Cooper attributed the decline in gas prices to lower crude oil prices, which have been driven down by optimism over the Strait of Hormuz resuming normal operations. However, she cautioned that volatility in the global oil market remains a factor and could lead to upward pressure on fuel costs.

Nationally, gas prices have also fallen, with the average price per gallon decreasing by nine cents to $4.00. Currently, half of all states are paying below $4 per gallon on average. The decrease in gas prices is partly due to a decline in gasoline demand, which decreased slightly last week from 9.04 million barrels per day to 9.03 million.

According to the Energy Information Administration (EIA), total domestic gasoline supply also decreased, falling from 211.3 million barrels to 209.7 million. Additionally, crude oil inventories increased by 2.5 million barrels from the previous week, with U.S. crude oil inventories sitting at around 6% below their five-year average for this time of year.