AAA: Tennessee gas prices rise 21 cents, but state falls to 4th least expensive in US

AAA reported Monday that gas prices are continuing to rise across the state, jumping 21 cents, on average, over last week.

The Tennessee Gas Price average is now $3.38, which is 29 cents more expensive than one month ago but 41 cents less than one year ago.

The biggest factor behind the recent surge in gas prices is the price of crude oil, which has risen 15% over the past five weeks. Record-breaking heat has also caused a reduction in fuel output at Gulf Coast refineries, adding additional upward pressure on pump prices, according to AAA.

“After gas prices rose significantly over much of last week, our state gas price average has actually remained the same since Saturday, “ said Megan Cooper, spokeswoman for AAA - The Auto Club Group. “Even with a momentary stall in our state gas price average, drivers can still likely expect fluctuations at the pump through this week. If crude oil prices hold steady, it’s likely that the significant daily gains in gas prices could be behind us. However, if crude prices continue to rise, pump prices would likely follow suit.”

Quick facts

•14% of Tennessee gas stations have prices below $3.25

•The lowest 10% of pump prices are $3.17 for regular unleaded

•The highest 10% of pump prices are $3.69 for regular unleaded

•Tennessee fell to the 4th least expensive market in the nation

National gas prices

AAA said the national average for a gallon of gas awoke from a months-long slumber, surging 16 cents since last week to $3.75. The primary cause appears to be the oil price, which has marched nearly $4 higher in the past few days to hover near $80 per barrel. As oil accounts for almost 50 percent of the cost of a gallon of gas, higher oil prices usually mean higher pump prices.

According to new data from the Energy Information Administration, gas demand rose slightly from 8.86 to 8.94 million barrels per day last week. Meanwhile, total domestic gasoline stocks dipped from 218.4 to 217.6 million barrels. With supplies tight, if demand should spike, pump prices will follow suit.

Friday’s national average of $3.75 is 21 cents more than a month ago but 47 cents less than a year ago.

Tennessee regional prices

Most expensive metro markets – Nashville ($3.44), Memphis ($3.44), Cleveland ($3.43)

Least expensive metro markets – Morristown ($3.26), Kingsport ($3.29), Knoxville ($3.31)