Gas prices across Tennessee ticked upward last week, nudging up by about five cents on average. Drivers across the state are now seeing an average price of $2.49 per gallon for regular unleaded. That’s just a penny shy of where things stood a month ago-and a notable 31 cents cheaper than this time last year.
It’s been a bit of a gas price seesaw lately. One week up, the next week down.
But the good news? These swings have been relatively minor.
According to AAA spokesperson Megan Cooper, the fluctuations haven’t been drastic enough to cause major concern at the pump. And despite the recent uptick, Tennessee drivers are still enjoying a noticeable year-over-year discount.
National Picture: Still Below Last Year’s Prices
Zooming out to the national level, the average price for a gallon of regular gas climbed slightly to $2.82. That’s still well below the $3.12 average from this time last year. January typically brings some relief at the pump, thanks to a seasonal dip in demand and the use of cheaper winter-blend gasoline.
Crude oil prices also remain relatively low, though global markets are keeping a close eye on rising tensions in Iran. As a major OPEC member and one of the top oil producers globally, any disruption to Iran’s oil infrastructure could send shockwaves through the market-and eventually hit U.S. gas prices.
What the Data Tells Us
Fresh numbers from the Energy Information Administration (EIA) show that gasoline demand rose slightly last week-from 8.17 million barrels per day to 8.30 million. Meanwhile, total domestic gasoline supply jumped from 242 million barrels to 251 million, with production holding strong at around 9.0 million barrels per day. That kind of supply cushion is helping to keep prices from spiking, even as demand inches upward.
Tennessee Regional Breakdown
Across the Volunteer State, prices vary slightly by region:
- Chattanooga drivers are paying around $2.43 per gallon, a modest bump from last week’s $2.40 average, but still significantly lower than the $2.75 they were paying a year ago.
- Knoxville sits at $2.43 as well-up from $2.37 last week, but down from $2.77 this time last year.
- Memphis prices are hovering near $2.46, a small rise from last week’s $2.45, and down from $2.80 in 2025.
- Nashville is seeing the highest prices among major Tennessee cities, with the average now at $2.59.
That’s up from $2.53 a week ago and down from $2.85 a year ago.
So while prices have crept up recently, the broader trend is still in drivers’ favor. With winter demand still relatively low and supplies holding steady, Tennessee motorists are getting a bit of a breather at the pump-for now.