From Staff Reports
The Tennessee gas price average fell below $4 per gallon on Friday, July 22, for the first time since May 5.
Gas prices across the state tumbled for another week. On average, gas is almost 18 cents cheaper than the previous week. The Tennessee Gas Price average is now $3.93 which is nearly 60 cents less expensive than one month ago but $1.06 more than one year ago.
“Tennessee is now in its sixth straight week for declining gas prices and drivers can likely expect prices at the pump to continue to drop yet again this week,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “We’ve seen another week of losses in the oil market and are continuing to see additional downward pressure on gas prices due to underwhelming gasoline demand figures — likely due to Americans changing their driving habits to offset rising gas prices.”
According to figures from AAA, 74% of Tennessee gas stations have prices below $4 a gallon. The lowest 10% of pump prices are $3.56 for regular unleaded while the highest 10% of pump prices are $4.33 for regular unleaded.
As a result, Tennessee is currently the least expensive market in the nation for gas prices.
Nationwide, the lackluster demand for gas and lower oil prices led to pump prices falling again, down 17 cents since last week to $4.35. The steady decline is due to low domestic demand for gasoline and oil prices that remain in the mid-$90s per barrel. The price of gas has now fallen every day since hitting a record $5.01 on June 14.
According to new data from the Energy Information Administration, gas demand rose from 8.06 million barrels per day to 8.52 million barrels per day last week. However, that rate is 800,000 barrels per day lower than last year and is in line with demand during the middle of July 2020, when COVID-19 restrictions curbed demand. Additionally, total domestic gasoline stocks increased by 3.5 million barrels to 228.4 million barrels, signaling that low demand led to growth in inventory last week. If gas demand remains low as stocks increase, alongside a continuing reduction in crude prices, drivers will likely continue to see pump prices decline.
The national average of $4.35 is 63 cents less than a month ago and $1.20 more than a year ago.