NASHVILLE, Tenn., (January 21, 2025) — Gas prices across Tennessee rose three cents, on average, over last week. The Tennessee Gas Price average is now $2.79 which is eight cents more expensive than both one month and one year ago.

“The recent surges in crude oil pricing are continuing to place upward pressure on the prices we see at the gas pump,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “The bitter cold temperatures that we’re seeing are also causing strong demand for winter heating fuel, which puts additional upward pressure on global oil prices. For now, drivers can expect to see continued fluctuation at the pump. The good news for Tennesseans is that so far the fluctuations are minimal and we are still one of the cheapest markets in the country for gas prices.”

National Gas Prices

Oil costs hovering around $80 a barrel have helped push the national average for a gallon of gas five cents higher since last week to $3.12.

According to new data from the Energy Information Administration (EIA), gasoline demand fell from 8.48 million b/d last week to 8.32. Meanwhile, total domestic gasoline stocks rose from 237.7 million barrels to 243.6, while gasoline production popped last week, averaging 9.3 million barrels daily.

Today’s national average for a gallon of gas is $3.12, eight cents more than a month ago and five cents more than a year ago.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI rose $2.54 to settle at $80.04 a barrel. The EIA reports that crude oil inventories decreased by 2.0 million barrels from the previous week. At 412.7 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 ($2.88), Nashville ($2.83), Kingsport ($2.82)
• Least expensive metro markets – Clarksville ($2.70), Chattanooga ($2.73), Cleveland ($2.73)

Tennessee Gas Price Averages 

(Price per gallon of regular unleaded gasoline)