Monday’s average is four cents less than the average a week ago, 13 cents less than one month ago and 22 cents less than one year ago. In Johnson City, fuel stations charged $2.47 on average, while Kingsport and Bristol recorded an average price of $2.43.
“Gas prices have been trending lower now for the past month and there are no signs of pump prices changing gears toward more expensive for the summer season,” AAA spokeswoman Jeanette Casselano said in a Monday news release.
“One major indicator supporting this forecast is the price of crude oil, which last week dropped by $6 to $53 (a barrel), which is one of the lowest prices of the year.”
The national gas price average Monday was $2.81, two cents less than last week’s average, eight cents less than one month ago and 13 cents less than this time last year. As of Monday, seven states — including Tennessee — have state averages less than $2.50.
Crude prices suffered a major loss last week — the largest in six months — after new trade tensions emerged between the U.S. and Mexico, a key U.S. trade partner and a major supplier of crude oil.
As the trade war with China continues, threats from the Trump Administration to increase tariffs on all products exported from Mexico to the U.S. has prompted market observers to worry about a recession, which could suppress global crude demand later this year.
Moving into this week, analysts said growing global trade war fears will likely push crude prices down.
For more information on local, state and national gas price trends and oil market information, visit www.gasprices.aaa.com.