Gas prices across Tennessee are continuing their steady slide, giving drivers a little more breathing room as the year winds down. On average, prices at the pump dropped another four cents over the past week, bringing the state average to $2.56 per gallon. That’s not just a weekly dip-it’s also four cents cheaper than a month ago and 11 cents less than this time last year.
It’s a trend that’s likely to stick around for a bit, according to industry analysts. With demand easing up and crude oil prices staying soft, there’s little pressure pushing prices upward. That’s good news for drivers heading into the holiday travel season.
Nationally, gas prices are also heading in the same direction-and hitting a notable milestone along the way. For the first time in four years, the average price for a gallon of regular dropped below the $3 mark.
As of last Tuesday, the national average sat at $2.95. You’d have to go back to May 2021 to find prices that low.
Several factors are contributing to the drop. Crude oil is holding steady around $60 per barrel, which is on the lower end of the spectrum. Demand for gas has also slowed, and the seasonal switch to winter-blend gasoline-which is cheaper to produce-is helping keep prices down.
Fresh numbers from the Energy Information Administration (EIA) back that up. Gasoline demand dropped from 8.72 million barrels per day to 8.32 million, while domestic supply grew from 209.9 million barrels to 214.4 million. Production also ticked up, averaging 9.8 million barrels per day last week.
Zooming back in on Tennessee, here’s a look at how prices are shaping up across the state:
Most expensive metro areas:
- Jackson: $2.64
- Memphis: $2.61
- Nashville: $2.59
Least expensive metro areas:
- Clarksville: $2.46
- Chattanooga: $2.46
- Cleveland: $2.49
Here’s how the weekly numbers stack up:
| Location | Monday | Week Ago | Month Ago | Year Ago |
|---|
| Tennessee | $2.564 | $2.607 | $2.603 | $2.679 | | Chattanooga | $2.465 | $2.512 | $2.507 | $2.638 |
| Knoxville | $2.544 | $2.584 | $2.576 | $2.617 | | Memphis | $2.611 | $2.641 | $2.640 | $2.709 |
| Nashville | $2.598 | $2.651 | $2.636 | $2.726 |
So what does all this mean for Tennessee drivers? Simply put: more money stays in your pocket. And unless there’s a major shake-up in global oil markets or a sudden spike in demand, this downward trend could carry through to the end of the year.
While gas prices might not be the flashiest headline, they’re one of the most direct ways we all feel the pulse of the economy. And right now, that pulse is steady-and easing up just in time for the holidays.