For the first time in three weeks, the Tennessee gas price average fell below $4.00 per gallon. Gas prices, on average, fell five cents over last week. The Tennessee Gas Price average is now $3.97 which is 30 cents more expensive than one month ago and $1.28 more than one year ago.
The average price in Coffee County is $3.96, according to AAA, which is a penny below the state average and 22 cents below the national average of $4.18.
“Gas prices across Tennessee are drifting lower thanks to declining crude oil prices. About 75% of gas stations across the state have prices below $4.00 per gallon,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “The oil market is seeing stronger downward pressure from the planned release of oil from the U.S. Strategic Petroleum Reserve in an effort to ease global supply concerns.”
Quick Facts
· 75% of Tennessee gas stations have prices below $4.00
· The lowest 10% of pump prices are $3.73 for regular unleaded
· The highest 10% of pump prices are $4.22 for regular unleaded
National Gas Prices
President Biden’s decision to release one million barrels of oil per day for six months (180 million barrels) from the Strategic Petroleum Reserve (SPR) helped send the global oil price tumbling to near $100 bbl. The release is intended to stem rising energy prices. The national average for a gallon of gas has fallen to $4.18
The SPR is a collection of underground salt caverns along the Gulf Coast where millions of gallons of crude oil are stored. Created in 1975 and managed by the U.S. Department of Energy, it is said to be the largest supply of emergency crude oil in the world. President Biden’s announcement came as OPEC and its allies announced they would maintain a plan to gradually ramp up production with 400,000 b/d monthly increases. Domestically, dipping gasoline demand is defying seasonal trends for a third straight week, perhaps due to higher pump prices and consumers altering their driving habits.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks increased by 800,000 bbl to 238.8 million bbl last week. Gasoline demand decreased from 8.63 million b/d to 8.5 million b/d. The drop in gas demand, alongside growth in total stocks, contributes to price decreases. If demand continues to decline as gasoline stocks continue to build, the national average will likely continue to move lower.
Today’s national average for a gallon of gas is $4.18, which is six cents less than a week ago, 35 cents more than a month ago, and $1.31 more than a year ago.
