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Gas prices expected to hit three-year low for New Year’s Day

Staff Report • Dec 29, 2018 at 6:00 PM

NASHVILLE — The plunge at the gas pump continued last week, and now gas prices are poised to have their lowest start to the new year since 2016.

Drivers in Tennessee can find gas prices below $2 a gallon at about 63 percent of stations throughout the state, AAA reported. Tennessee gas prices averaged $2.03 per gallon on Thursday after declining 6 cents over the last week; this is the lowest daily average price since July 2017.

Despite this decline, Tri-Cities motorists are still paying some of the highest gas prices in the state, surpassed only by Nashville.

Trends

Since mid-October, the state average has declined 65 cents. Tennessee motorists are paying about 70 cents per gallon less than they did in May and 22 cents less than this time last year, according to AAA.

The state average could dip below $2 a gallon before the New Year, AAA said. The last time Tennessee gas prices averaged below $2 per gallon was July 6, 2017. During that time, crude oil was trading at around the same price it is now ($45 per barrel).

“Falling gas prices continue to be ‘the gift that keeps giving’ this holiday season,” said Mark Jenkins, AAA spokesman, in a news release. “Prices at the pump declined as AAA projected last week, largely due to weakness in the stock market and concerns about global crude oversupply. Although oil and gasoline futures have been on a rollercoaster ride, wholesale gas prices have held steady. Unless oil prices suddenly spike, prices at the pump should remain low through the end of the year.”

Most expensive gas prices in the state

• Nashville ($2.14)

• Johnson City ($2.13)

• Kingsport-Bristol ($2.10)

Least expensive gas prices in the state

• Chattanooga ($1.87)

• Cleveland ($1.93)

• Knoxville ($1.96)

Across the country

Americans are finding gas prices below $2 a gallon at 31 percent of filling stations in the U.S., AAA reported. Since mid-October, the national average has plummeted 61 cents. Thursday’s average price of $2.29 per gallon is the lowest since July 2017.

To view daily gas price averages, visit GasPrices.AAA.com.

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