According to travel organization AAA, the average price for a gallon of regular unleaded gasoline in the state should be $2.38 on Thanksgiving Day, an increase of eight cents from a year ago.
If correct, that price will be five cents lower than the recorded average Sunday and 29 cents cheaper than the price a month ago.
With strong production, high global supplies and weakening demand, crude oil sank to its lowest price since last year and wholesale gasoline prices hit 13-month lows. There’s still room for further declines, experts say.
“Tennesseans can be thankful for strong oil production and supplies, which have set the table for some of the lowest gas prices of the year,” AAA spokesman Mark Jenkins said. “The state average should carve off another five cents before Thanksgiving, and eventually drop below $2.20 per gallon before fully adjusting to recent oil and wholesale gas price declines.
“However, there is potential for oil prices to rise in December, depending on how markets respond to possible OPEC oil production cuts and sanctions against Iranian oil exports.”
The most expensive gas in the state this week was found in Nashville ($2.50), Johnson City ($2.47) and Jackson ($2.44). The least expensive average prices were in Cleveland ($2.29), Chattanooga ($2.32) and Knoxville ($2.36).