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HomeNewsAAA says Gas Prices Set for 5-10 Cent Drop

AAA says Gas Prices Set for 5-10 Cent Drop

Clarksville-Montgomery County continues to have Third Cheapest Gas Prices in Tennessee

AAANashville, TN – The 45.5 million Americans who hit the road this Thanksgiving will find the most expensive gas prices for the holiday in three years. The average price for regular unleaded gasoline in Tennessee is $2.54 – 40 cents more than Thanksgiving Day 2016. That amounts to an increase of $6.00 to fill an average size gas tank.

After shooting-up two weeks ago, motorists will be thankful to hear that prices at the pump are beginning to sink lower.

Where will motorists find the highest/lowest prices?
Where will motorists find the highest/lowest prices?

Tennessee gas prices declined an average of 2 cents in the last three days. The discount comes as the U.S. Government reported a weekly increase in crude and gasoline inventories, and growth in domestic oil production. This allowed oil prices to weaken from their 2-year highs, and wholesale gasoline prices to drop nearly 10 cents.

“Gas prices should decline 5-10 cents through Thanksgiving weekend,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Although gasoline demand will be high this week, it will be cheaper for gas stations to purchase their fuel than a week ago. Since retailers profit more off of concessions in their convenience stores than the sale of gasoline, they will be more likely to lower gas prices as a way to attract passing motorists.

Fuel Fundamentals - November 2017

“Some of the lowest prices will be in areas where multiple gas stations are within close proximity of each other, leading to higher competition. Oftentimes gas stations wait until Friday to lower their prices, in hopes that managers are rival stations are not paying attention, or gone for the weekend. Some of the highest prices are often at gas stations in rural areas, near airports, and at interstate on/off ramps.”

Cheapest and Most Expensive Tennessee Gas Prices

  • The most expensive gas price averages in Tennessee are in Jackson ($2.39), Nashville ($2.34), and Knoxville ($2.34)
  • The least expensive gas price averages in Tennessee are in Chattanooga ($2.22), Cleveland ($2.23), and Clarksville-Hopkinsville ($2.24)

2017 November Oil Prices

Oil prices remain a major influencer of prices at the pump, and any surprise shifts in oil would squash the downward pressure on gas prices. The Energy Information Administration estimates that half the price of gasoline is steered by oil prices. Year-over-year figures illustrate that point. Last Thanksgiving, when motorists paid 30-40 cents less for gasoline, the price of oil was $10.00 per barrel cheaper.

Earlier this month when gas prices jumped, the price of oil had just climbed nearly $6.00. Analysts at OPIS expect oil prices to trend lower through the rest of the year and early 2018, as demand drops during the winter.

That would help drag gas prices lower too. Conversely, oil prices could face upward pressure depending on the outcome of an OPEC meeting later this month, where oil producing countries will decide whether to extend an agreement to cut production in effort to reduce global oversupply and raise prices.

Gas Price Tools for Reporters/Consumers

  • GasPrices.AAA.com – Daily national, state, and metro gas price averages.
  • AAA Mobile app – Free app that shows current prices at a gas station near you.

Highs and Lows of 2017

  • National: the highest average price for gasoline was $2.67 on September 8th. The lowest was $2.23 on July 5th.
  • Florida: the highest average price in was $2.73 on September 9th. The lowest was $2.13 on July 17th.
  • Georgia: the highest average price was $2.76 on September 12th. The lowest was $2.08 on July 5th.
  • Tennessee: the highest average price was $2.60 on September 10th. The lowest was $1.99 on July 5th.

Current and Past Price Averages

Regular Unleaded Gasoline

Sunday Saturday Week Ago Month Ago One Year Ago Highest Price on Record
National $2.544 $2.549 $2.560 $2.457 $2.143 $4.114 (7/17/2008)
Florida $2.495 $2.502 $2.529 $2.443 $2.109 $4.079 (7/17/2008)
Georgia $2.393 $2.398 $2.414 $2.415 $2.116 $4.164 (9/15/2008)
Tennessee $2.315 $2.321 $2.336 $2.290 $1.967 $4.118 (9/15/2008)
Click here to view current gasoline price averages

Gas Price Survey Methodology

AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

About The Auto Club Group

The Auto Club Group (ACG) is the second largest AAA club in North America.  ACG and its affiliates provide membership, insurance, financial services and travel offerings to over 9.4 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. 

ACG belongs to the national AAA federation with more than 57.7 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety.

Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. AAA clubs can be visited on the Internet at AAA.com.

 

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