NASHVILLE, Tenn., (December 8, 2025) — Gas prices continue to fall across the state, falling four cents, on average, over last week. The Tennessee Gas Price average is now $2.56 which is four cents less expensive than one month ago and 11 cents less than one year ago.

“Tennessee drivers continue to see prices drop at the pump,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Barring any major changes in the overall market, this trend is likely to continue through the end of the year thanks to weaker demand and lower crude oil prices.”

National Gas Prices

The national average for a gallon of regular gasoline hit a milestone last week when it dipped below $3 a gallon for the first time in 4 years. Since Tuesday, the national average has dropped to $2.95. The last time the national average reached an even $3.00 or below was in May of 2021. Crude oil prices remain on the lower side around $60 a barrel. Sluggish gas demand and cheaper-to-produce winter blend gasoline are also contributing to the drop at the pump.

According to new data from the Energy Information Administration (EIA), gasoline demand decreased from 8.72 million b/d last week to 8.32 million. Total domestic gasoline supply increased from 209.9 million barrels to 214.4 million. Gasoline production increased last week, averaging 9.8 million barrels per day.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI rose 31 cents to settle at $58.95 a barrel. The EIA reports crude oil inventories increased by 0.6 million barrels from the previous week. At 427.5 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year.

Tennessee Regional Prices 

• Most expensive metro markets – Jackson ($2.64), Memphis ($2.61), Nashville ($2.59)
• Least expensive metro markets – Clarksville ($2.46), Chattanooga ($2.46), Cleveland ($2.49)

Tennessee Gas Price Averages 
(Price per gallon of regular unleaded gasoline)