NASHVILLE — Though Tennessee’s average gas price remained unchanged since last week, motorists still enjoyed the cheapest July prices in 16 years.
The state average is $1.92, which is nearly 2 cents less than one month ago and 52 cents less than one year ago, AAA reported. Tennessee is still the ninth least expensive market in the nation.
“Tennessee motorists saw the cheapest monthly average for July since 2004,” said Megan Cooper, AAA spokesperson, in a press release. “While we expect to see typical fluctuation, August gas prices are not expected to spike, especially amid increases in COVID-19 cases.”
• 90% of Tennessee gas stations still have prices below $2.
• The lowest 10% of pump prices are $1.72 for regular unleaded.
• The highest 10% of pump prices are $2.22 for regular unleaded.
Most expensive gas prices in the state
• Nashville ($1.97)
• Memphis ($1.97)
• Jackson ($1.97)
Least expensive gas prices in the state
• Knoxville ($1.85)
• Kingsport ($1.87)
• Johnson City ($1.87)
Across the nation
On the week, the national gas price average held steady at $2.18 as the majority of state averages saw minimal impact at the pump. With the exception of a few outliers — Florida (+10 cents), Utah (+10 cents) and Idaho (+5 cents) — state averages either decreased by 4 cents or less or increased by no more than two pennies.
Gas prices are trending cheaper despite an increase in demand, according to AAA. Up 3% over last week, gasoline demand measured at 8.8 million barrels per day, the highest reading since the pandemic started. Though, according to the Energy Information Administration (EIA), year-over-year demand is down about 8%.
The national average, which is 1 cent more than last month and 53 cents cheaper than last year, has been largely unaffected by Hurricane Isaias. Given lower than normal U.S. gasoline demand and healthy stock levels, gas prices nationally are not likely to be impacted by Isaias.
What about oil?
At the end of Friday’s formal trading session, West Texas Intermediate crude increased by 35 cents to settle at $40.27 per barrel, AAA reported. Domestic crude prices increased after EIA’s latest weekly report revealed that total domestic crude inventories decreased by 10.6 million barrels, bringing the current total to 526 million barrels.
The price increase amid increasing gasoline demand, up from 8.55 million barrels per day to 8.81 million barrels per day in the new EIA report, could mean that the domestic crude market is meeting demand and production is stabilizing as coronavirus infections continue to increase worldwide.
If crude supplies continue to decline alongside rising demand, domestic crude prices could continue to increase this week.
To view daily gas price averages, visit gasprices.aaa.com.