Driven by market optimism about the rollout of COVID-19 vaccines, a tighter supply and rising crude oil prices, Tennessee’s gas price average increased for the second week in a row, up five cents from last week.
Industry group AAA reported the increase Monday, pinning the average price in the state for a gallon of regular gas at $2.19, 22 cents more than a month ago.
“This week marks the second week of increases so far this year for Tennessee pump prices. Since January 1st, gas prices have increased a total of 15 cents,” said AAA spokesperson Megan Cooper. “Market optimism surrounding the coronavirus vaccine, tightening supply and increasing crude oil prices are all factors helping to push gas prices higher.”
According to the group, 74% of Tennessee gas stations have prices below $2.25. The state was the 10th least expensive market in the nation.
Of the metro markets, Morristown ($2.23), Knoxville ($2.22) and Cleveland ($2.20) reported the highest average prices. Chattanooga ($2.13), Clarksville ($2.14) and Kingsport ($2.15) had the lowest.
Nationally, average gas prices increased seven cents from last week to $2.39 per gallon, 18 cents more than a month ago and 17 cents less than last year.
Market optimism and a report showing declining crude inventories sent oil prices higher, to $53.57 per barrel.
If prices stay above $50 per barrel, drivers could see pump prices continue to climb through the week.
From staff reports