NASHVILLE, Tenn., (January 12, 2026) — Gas prices across the state moved lower over last week, falling six cents, on average. The Tennessee Gas Price average is now $2.44 which is 15 cents less expensive than one month ago and 29 cents less than one year ago.

“Right now, Tennesseans are seeing seasonally low gas prices that we would expect this time of year,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “It’s likely that pricing will remain low in the short term thanks to ample supply and lower demand this time of year.”

National Gas Prices

The new year begins with the lowest national average in years at $2.79. The last time the national average for a gallon of regular gas was this low was back in March of 2021. Crude oil prices remain relatively unchanged from the end of 2025 and unaffected amid questions about Venezuela’s impact on the oil market. Currently, the global oil supply is strong, as OPEC+, the coalition of oil-exporting countries, says it’s not planning any production hikes in the first quarter of 2026 due to lower demand.

According to new data from the Energy Information Administration (EIA), gasoline demand decreased last week from 8.56 million b/d to 8.17 million. Total domestic gasoline supply increased from 234.3 million barrels to 242 million. Gasoline production decreased last week, averaging 9.0 million barrels per day.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI fell $1.14 to settle at $55.99 a barrel. The EIA reports crude oil inventories decreased by 3.8 million barrels from the previous week. At 419.1 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 – Nashville ($2.52), Jackson ($2.51), Memphis ($2.45)
• Least expensive metro markets – Morristown ($2.34), Knoxville ($2.36), Chattanooga ($2.39)

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