Gas prices in Tennessee averaged $2.34 per gallon on Sunday after dropping 8 cents last week, AAA reported. The average price in Tennessee has declined the last 45 days for a total discount of 35 cents. The lowest average price so far this year was $2.26 on Jan. 1.
As gas prices continue to fall, so do oil prices. Just as retailers cut prices on Black Friday, the price of crude dropped by more than 10 percent due to concerns that strong global oil production will overpower demand.
“Last week's crude price plunge adds even more weight to what was already strong downward pressure on prices at the pump,” said Mark Jenkins, AAA spokesman, in a press release. “Tennessee motorists should see gas prices drop another 5-15 cents as a result.
“The state average will likely log a new 2018 low within the next 10 days. These falling prices are mostly due to record crude production rates from the U.S., Russia and Saudi Arabia. Unless the oil market quickly recovers, these low gas prices should hang around through the end of the year.”
Local lows of 2018
• Kingsport: $2.24 on Jan. 1
• Johnson City: $2.23 on Jan. 1
Most expensive gas prices in the state
• Johnson City ($2.43)
• Nashville ($2.43)
• Jackson ($2.36)
Least expensive gas prices in the state
• Cleveland ($2.17)
• Chattanooga ($2.22)
• Knoxville ($2.27)
What about oil?
Crude oil prices plunged another $6 per barrel last week, the equivalent of about 15 cents at the pump, AAA reported. Friday's daily settlement of $50.42 per barrel is the lowest since October 2017.
Domestic crude production has held steady at a record-high 11.7 million barrels per day, according to AAA. Crude oil supplies increased again by 1.1 percent for the ninth consecutive weekly gain.
To view daily gas price averages, visit GasPrices.AAA.com.