NASHVILLE, Tenn., (August 26, 2024) — The decrease in pump prices picked up momentum last week, with pump prices across the state falling nine cents, on average. Tennessee pump prices also fell below $3 per gallon last week. The Tennessee Gas Price average is now $2.93 which is 15 cents less expensive than one month ago and 48 cents less than one year ago.

Labor Day gas prices are likely to be the least expensive in three years for Tennessee. Today’s state gas price average is 48 cents cheaper that what drivers paid on Labor Day last year and only two cents more expensive than what drivers paid in 2021 ($2.91/gallon).

“We’re seeing more significant drops at the pump heading into Labor Day weekend, which is great news for those planning a holiday road trip,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Tennessee has also moved into the third least expensive state gas price average in the country and all but one of our major metro areas have metro averages below $3 per gallon.”

Click here for AAA’s travel trends and tips for Labor Day Weekend. 

National Gas Prices

Reaching a price point last seen on March 6, the national average for a gallon of gas fell six cents to $3.35 since last week.

According to new data from the Energy Information Administration (EIA), gas demand crept higher last week from 9.04 million b/d to 9.19. Meanwhile, total domestic gasoline stocks fell from 222.2 to 220.6 million barrels, but gasoline production increased, averaging 9.8 million daily. Mild gasoline demand, steady supply, and low oil costs may cause pump prices to slide further.

Today’s national average for a gallon of gas is $3.35, 16 cents less than a month ago and 47 cents less than a year ago.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI fell by $1.24 to settle at $71.93 a barrel. The EIA reports that crude oil inventories decreased by 4.6 million barrels from the previous week. At 426.0 million barrels, U.S. crude oil inventories are about 5% below the five-year average for this time of year.

Drivers can find current gas prices along their route using the AAA TripTik Travel planner.

Tennessee Regional Prices 

• Most expensive metro markets – Jackson ($3.00), Memphis ($2.99), Nashville ($2.97)
• Least expensive metro markets – Clarksville ($2.78), Chattanooga ($2.80), Cleveland ($2.88)

Tennessee Gas Price Averages 

(Price per gallon of regular unleaded gasoline)