Gas prices in Tennessee increased 1.5 cents during the past week, AAA reported. So far, motorists have found the most expensive summer gas prices in four years.
Since June 1, Tennessee gas prices have averaged $2.64 per gallon, an increase of nearly 60 cents compared to the average price last summer. However, current pump prices remain 12 cents below this year's high, which was set during Memorial Day weekend.
“Reduced global oil supplies have caused summer travelers to pay a higher price at the pump this year,” said Mark Jenkins, AAA spokesman, in a press release. “Fortunately, domestic gasoline production remains strong, which should help prevent major swings in summer gas prices.
“However, pump prices will pop if a major hurricane threatens refineries along the Gulf Coast. Last year, Hurricane Harvey caused a 40-cent spike.”
Most expensive gas prices in the state
• Jackson ($2.67)
• Nashville ($2.65)
• Memphis ($2.65)
Least expensive gas prices in the state
• Clarksville-Hopkinsville ($2.55)
• Knoxville ($2.56)
• Johnson City ($2.57)
According to the latest EIA figures, demand is at near record levels, averaging 2 percent higher than last year. Fortunately, U.S. refineries are more than keeping pace, according to AAA.
Gasoline production in the Gulf Coast is 12 percent better than this time last year. As a result, gasoline futures prices dropped 7 cents on the stock market last week.
Oil prices remain near multi-year highs, yet held relatively steady through last week, AAA reported. The price of crude settled at $73.80 per barrel on Friday, 35 cents less than the week before.
To view daily gas price averages, visit GasPrices.AAA.com.