NASHVILLE, Tennessee, (August 26, 2024) – The decline in pump prices picked up steam last week, with pump prices across the state dropping an average of nine cents. Pump prices in Tennessee also fell below $3 per gallon last week. The average price of gasoline in Tennessee is now $2.93, which is 15 cents less than a month ago and 48 cents less than a year ago.

Labor Day gas prices in Tennessee are expected to be the lowest in three years. Today’s state average gasoline price is 48 cents cheaper than what drivers paid on Labor Day last year and just two cents more than what drivers paid in 2021 ($2.91/gallon).

“We’re seeing significant price drops at the pump ahead of Labor Day weekend, which is great news for anyone planning a road trip over the holidays,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Tennessee is also the third cheapest state in the country, and all but one of our major metropolitan areas have average prices below $3 per gallon.”

Click here to view AAA’s travel trends and tips for Labor Day weekend.

National gas prices

The national average price for a gallon of gasoline has fallen six cents since last week, to $3.35, and last reached a price on March 6.

According to new data from the Energy Information Administration (EIA), gas demand rose to 9.19 last week from 9.04 million barrels per day. Meanwhile, total domestic gasoline inventories fell to 220.6 million barrels from 222.2 million barrels, but gasoline production rose, averaging 9.8 million barrels per day. Weak gasoline demand, stable supply and low oil prices could lead to further price declines at the pump.

The national average price for a gallon of gasoline today is $3.35, 16 cents less than a month ago and 47 cents less than a year ago.

Dynamics of the national oil market

At the close of the official trading session on Wednesday, the WTI price fell by $1.24 to settle at $71.93 per barrel. The EIA reports that crude oil inventories fell by 4.6 million barrels compared to the previous week. At 426.0 million barrels, US crude oil inventories are about 5% below the five-year average for this time of year.

The AAA TripTik trip planner allows drivers to find out the latest gas prices along their route.

Tennessee Regional Awards

• Most expensive Metro Markets – Jackson ($3.00), Memphis ($2.99), Nashville ($2.97)
• Cheapest Metro Markets – Clarksville ($2.78), Chattanooga ($2.80), Cleveland ($2.88)

Average gas prices in Tennessee

(Price per gallon of regular unleaded gasoline)