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Tennessee gas prices continue steady increase

Staff Report • Jun 16, 2020 at 5:00 PM

NASHVILLE — Tennessee’s average gas price is on a steady climb, rising nearly 8 cents since this time last week.

The state average is now $1.87, which is a quarter higher than one month ago and 50 cents less than one year ago, AAA reported.

“As Americans drive more, they are re-fueling gasoline demand levels, which is helping to lift pump prices,” said Megan Cooper, spokesperson for AAA — The Auto Club Group, in a press release. “Higher demand will contribute to increasing gas prices in the coming weeks, but they aren’t going to spike to typical summer prices. That’s because demand won’t be sufficient enough to drive down stocks levels. Gasoline stocks sit at a significant surplus of nearly 24 million (barrels) year-over-year.”

Quick facts

• 95% of Tennessee gas stations still have prices below $2.

• The lowest 10% of pump prices are $1.71 for regular unleaded.

• The highest 10% of pump prices are $2.11 for regular unleaded.

• Tennessee is the 10th least expensive market in the nation.

Most expensive gas prices in the state

• Nashville ($1.93)

• Cleveland ($1.89)

• Jackson ($1.87)

Least expensive gas prices in the state

• Johnson City ($1.82)

• Kingsport ($1.82)

• Knoxville ($1.84)

Across the nation

Americans are filling up at the pump more and more. Since mid-May, gasoline demand has increased 18% to 7.9 million barrels per day, according to the latest Energy Information Administration (EIA) report.

The slow but steady rise in demand has pushed the national pump price more expensive by 13% in the same timeframe. Monday’s national average of $2.10 is 7 cents more on the week and 24 cents more on the month, but 59 cents cheaper on the year.

Only one-third of state averages are $1.99 per gallon or less, AAA reported, and the majority of those are states in the South and Southeast.

What about oil?

At the end of Friday’s formal trading session, West Texas Intermediate crude decreased by 8 cents to settle at $36.34 per barrel, AAA reported.

Domestic crude prices decreased last week amid increased market concern that an increase in new coronavirus infections could lead to another reduction in crude demand. Additionally, EIA’s weekly report showed that total domestic crude inventories grew by 5.7 million barrels last week, bringing the total to 538.1 million barrels.

The increase in crude supplies also helped to push prices lower, since it signals that domestic crude production may need to reduce further in order to meet lower than normal demand. If these trends continue this week, crude prices could decline further.

To view daily gas price averages, visit gasprices.aaa.com.

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