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Tennessee gas prices approach lowest point of year

Brandon Paykamian • Updated Nov 26, 2018 at 5:10 PM

Analysts with GasBuddy and AAA say Tennessee gas prices are approaching their lowest figures of the year, and motorists could see more discounts later this week. 

According to a Monday AAA report, gas prices in Tennessee averaged $2.34 on Sunday after dropping 8 cents the past week and declining 35 cents over the past 45 consecutive days. In Johnson City, gas prices averaged $2.43. 

"Last week's crude price plunge adds even more weight to what was already strong downward pressure on prices at the pump," AAA spokesman Mark Jenkins said in a news release.

"Tennessee motorists should see gas prices drop another 5-15 cents as a result. The state average will likely log a new 2018 low within the next 10 days.

“These falling prices are mostly due to record crude production rates from the U.S., Russia and Saudi Arabia. Unless the oil market quickly recovers, these low gas prices should hang around through the end of the year."

AAA reported the national average price of $2.56 per gallon is 7 cents less than last week, nearly 30 cents less than last month and the lowest daily average since March.

Sunday's U.S. average price was 7 cents more than this year's low of $2.49 set in January. During that time, Tennessee’s average pump price was $2.26. 

Earlier this month, however, geopolitical tensions and sanctions against Iran’s energy sector could have the potential to disrupt this much-welcomed drop at the pump, said Patrick DeHaan, head of petroleum analysis for GasBuddy.

Analysts believed motorists could pay close to $3 per gallon once again, but now DeHaan said it looks like motorists could expect this downward trend to continue. 

“Regardless (of those sanctions), AAA believes the highest prices of the year are behind us," he said in a Nov. 5 press release. 

For more information on local, state and national gas price market trends, visit www.gasbuddy.com or www.gasprices.aaa.com

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