he Tennessee gas price average continues to increase, rising three cents over last week, on average. The Tennessee Gas Price average is now $3.29 which is 25 cents more expensive than one month ago and 89 cents more than one year ago.
The average price in Coffee County has shot up to $3.30, which is a penny more expensive than the state average and 23 cents below the national average of $3.53.
“Gas prices are still rising across the state this week, however, at a much slower rate compared to last week,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Upward tension on gas prices from elevated crude oil prices, as well as ongoing geopolitical tensions between Russia and Ukraine will likely continue to push pump prices higher this week.”
Quick Facts
· 33% of Tennessee gas stations have prices below $3.25
· The lowest 10% of pump prices are $3.11 for regular unleaded
· The highest 10% of pump prices are $3.58 for regular unleaded
· Tennessee is the 10th least expensive market in the nation this week
National Gas Prices
Over last week the national average for a gallon of regular gasoline has increased by five cents to $3.53. According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 1.3 million bbl to 247.1 million bbl last week. On the other hand, gasoline demand decreased from 9.13 million b/d to 8.57 million b/d. Typically, a decrease in gas demand during winter would put downward pressure on pump prices, but elevated crude prices continue to push pump prices higher. Pump prices will likely rise if crude prices continue to climb.
National Oil Market Dynamics
At the close of Thursday’s formal trading session, WTI decreased by $1.90 to settle at $91.76. Although crude prices slipped Thursday due to increased market expectations that more oil could enter the global market if the U.S. and Iran complete a new nuclear agreement, and sanctions are lifted, the tension between Russia and Ukraine contributed to rising oil prices earlier in the week. Russia is a member of OPEC+, and any sanctions based on their actions toward Ukraine may cause it to withhold crude oil from the global market. Additionally, EIA reported that total domestic crude stocks increased by 1.1 million bbl last week to 411.5 million bbl. The current stock level is approximately 11 percent lower than mid-February 2021, contributing to pressure on domestic crude prices.
