NASHVILLE – Gasoline prices in Tennessee have fallen an average of six cents over the past week. Nearly all of the state’s metropolitan areas are now reporting average prices below $3 per gallon. The statewide average price for gasoline is currently $3.01, 11 cents less than a month ago and 42 cents less than the same period last year.

“Tennessee drivers saw a slight recovery at the pump last week, with pump prices below $3 per gallon in several areas of the state,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “We still see some uncertainty in the market, so fluctuations in our local gasoline prices cannot be ruled out this week. However, if market conditions hold, the statewide average price could fall below $3 per gallon this week.”

Nationally, gasoline prices fell three cents last week, averaging $3.44 per gallon – a price similar to June. The latest data from the Energy Information Administration (EIA) shows that gas demand fell last week from 9.25 million barrels per day (b/d) to 8.96 million barrels per day, while total domestic gasoline inventories rose slightly from 223.8 million barrels per day to 225.1 million barrels per day. Gasoline production rose to an average of 10.0 million barrels per day, and crude oil production reached a historic high of 13.4 million barrels per day.

Lower gasoline demand, rising supply and stable oil prices could lead to further gasoline price reductions in the coming weeks. As of Monday, the national average price for a gallon of gasoline was $3.44, nine cents less than a month ago and 40 cents less than a year ago.

At the close on Wednesday, the price of West Texas Intermediate (WTI) crude oil rose $2.03 to $75.23 per barrel. The EIA reported a 3.7 million barrel drop in U.S. crude oil inventories from the previous week. Current inventories stand at 429.3 million barrels – about 6% below the five-year average for this time of year.

In Tennessee, the most expensive metropolitan markets are Jackson ($3.09), Nashville ($3.04), and Memphis ($3.04). The cheapest markets are Clarksville ($2.89), Chattanooga ($2.90), and Morristown ($2.97).