NASHVILLE, Tenn., (January 5, 2026) — Gas prices across the state have fluctuated over the past couple of weeks, but Tennesseans are still beginning the new year with gas prices cheaper than both one month ago and one year ago. The Tennessee Gas Price average is now $2.50 which is seven cents less expensive than one month ago and 24 cents less than one year ago.

“We’re starting the year out with gas prices nearly a quarter cheaper than one year ago, mostly thanks to steady oil supply and softened demand compared to previous years,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “While global events can influence prices, there’s no indication yet that recent developments will have a significant effect. Tennesseans can likely expect to see some modest price fluctuation in the coming weeks.”

While recent developments in Venezuela have drawn attention, oil prices remain relatively stable. Friday’s closing price for U.S. crude oil was $57.32 per barrel, up just 58 cents from the previous week. Although Venezuela was once a significant producer of crude oil, its exports have been limited for years due to sanctions. Analysts say global supply remains sufficient, though any major disruption could put upward pressure on prices.

Tennessee Regional Prices 

• Most expensive metro markets – Nashville ($2.60), Jackson ($2.55), Cleveland ($2.53)
• Least expensive metro markets – Morristown ($2.38), Kingsport ($2.42), Knoxville ($2.42)

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