NASHVILLE, Tenn., (December 16, 2024) — Gas prices across the state moved three cents lower, on average, over last week.The Tennessee Gas Price average is now $2.64 which is six cents less expensive than one month ago and 12 cents less than one year ago.

“While we may see our prices fluctuate over the next two weeks, it’s very likely that Tennesseans taking a road trip over the holidays will be met with slightly cheaper gas prices than they paid last year,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Right now, the state gas price average is 14 cents cheaper than the state gas price average over the last two weeks last year.”

Holiday Gas Price Outlook

Gas prices are expected to be cheaper than last year’s levels. During the last two weeks of 2023, Tennessee gas prices averaged $2.78 per gallon. During that time, the state average ranged from $2.75 per gallon to a high of $2.82/g. Currently, Tennessee drivers are currently paying $2.64 per gallon. To view updated national, state, and metro area gas price averages, visit GasPrices.AAA.com.

Near-Record Travel Numbers Expected in Tennessee for Year-End Holidays

Tennesseans are expected to travel in near-record numbers for the year-end holiday period (from Saturday, December 21 to Wednesday, January 1). AAA predicts 2.7 million Tennesseans will travel 50 miles or more from home. That’s over 62,000 more travelers than last year and 62,000 travelers shy of the record high, set in 2019.

Road travel is expected to be the second-highest on record in Tennessee. More than 2.5 million Tennesseans are forecast to take a road trip. That’s 52,000 more Tennessee road trippers than last year. 93% of holiday travelers will drive to their destinations, making it the most popular way to travel.

To view the full Year-End Holiday Travel Forecast, click here.

National Gas Prices

Going nowhere fast is an apt description of the national average for a gallon of gas, which rose just a penny since last week to reach $3.02. It has been close to the $3 level for five weeks yet faces stubborn resistance.

According to new data from the Energy Information Administration (EIA), gasoline demand rose just a bit from 8.73 million b/d last week to 8.81, about 50,000 b/d lower than the same week in 2023. Meanwhile, total domestic gasoline stocks rose from 214.6 million barrels to 219.7, while gasoline production increased last week, averaging 10.0 million barrels daily.

Today’s national average for a gallon of gas is $3.02, five cents less than a month ago and five cents less than a year ago.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI rose $1.70 to settle at $70.29 a barrel. The EIA reports that crude oil inventories decreased by 1.4 million barrels from the previous week. At 422.0 million barrels, U.S. crude oil inventories are about 6% below the five-year average for this time of year.

Tennessee Regional Prices 

• Most expensive metro markets – Johnson City ($2.71), Jackson ($2.71), Memphis ($2.70)
• Least expensive metro markets – Clarksville ($2.54), Chattanooga ($2.55), Knoxville ($2.59)

Tennessee Gas Price Averages 

(Price per gallon of regular unleaded gasoline)