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Gas prices rise due to increasing demand, state gas taxes

Staff Report • Jul 8, 2019 at 10:00 PM

NASHVILLE – Just as summertime temperatures are rising, so are prices at the gas pump.

Tennessee’s average gas price is $2.46 per gallon for regular unleaded, which is 5 cents more than last week’s average, but still 2 cents less than one month ago and 15 cents less than one year ago, according to AAA.

The national average is $2.75, which is 4 cents more than last week, about the same as a month ago and 11 cents less than one year ago.

“The majority of motorists can expect more expensive gas prices throughout July, but the national average is still not likely to hit $3/gallon,” said Stephanie Milani, Tennessee public affairs director for AAA, in a press release. “In addition to rising gasoline demand, 13 states this month have introduced new gas taxes that have contributed to the national average increase. Those states are California, Connecticut, Illinois, Indiana, Maryland, Michigan, Montana, Nebraska, Ohio, Rhode Island, South Carolina, Tennessee ($0.01) and Vermont.”

Most expensive gas prices in the state

• Nashville ($2.53)

• Jackson ($2.50)

• Cleveland, Memphis and Morristown ($2.46)

Least expensive gas prices in the state

• Chattanooga ($2.38)

• Johnson City ($2.38)

• Kingsport-Bristol ($2.39)

What about oil?

At the close of Friday’s formal trading session on the New York Mercantile Exchange, West Texas Intermediate crude increased by 17 cents to settle at $57.51, AAA reported.

The fall in prices occurred despite data from the Energy Information Administration, which showed that total domestic crude inventories fell by 1 million barrels to 468.5 million barrels. Moving into this week, if it appears that the U.S. and China are not closer to a trade resolution, crude prices could continue to decrease.

However, if tension between the U.S. and Iran escalates, crude prices could surge amid market concerns of conflict in the Middle East, which could limit oil flows from the region.

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

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