In 2017, gas prices in the Volunteer State averaged $2.18, according to AAA. That upward trajectory has continued into 2018, as gas prices had the most expensive start to the year in four years.
Tennessee gas prices averaged $2.26 on New Year’s Day, 13 cents more than the year before. Wednesday’s state average of $2.27 is 3 cents more than last week and 13 cents more than this time last year, AAA reported.
“After a quick jump at the pump last week, prices are relatively stable right now across the southeastern U.S. and should begin to take a downward turn soon,” said Mark Jenkins, AAA spokesman, in a press release. “Gas prices normally decline during January and February, as gasoline demand hits the lowest levels of the year.
“The pump-price plunge has faced resistance from oil prices, which have been trading at two-year highs. Oil analysts believe the oil market is somewhat inflated due to geopolitical tensions and supply concerns, but prices should decline soon.”
Most expensive gas prices in the state
• Jackson ($2.32)
• Nashville ($2.28)
• Memphis ($2.28)
Least expensive gas prices in the state
• Chattanooga ($2.20)
• Clarksville-Hopkinsville ($2.20)
• Cleveland ($2.23)
Projections for 2018
Energy prices will be higher this year, according to the Energy Information Administration. The EIA expects gas prices to average $2.51 in 2018, 12 cents more than the annual average in 2017. The EIA also projects oil prices will average $52.77 per barrel, nearly $2 more than last year’s average.
For 2018, U.S. crude production is expected to set a new record, helping the country to meet domestic demand and expand its export prowess to countries that have growing energy needs around the globe. The total number of active rigs, 747, is 222 more than the total active number of rigs at the beginning of 2017.
To view daily gas price averages, visit www.GasPrices.AAA.com.