Tennessee gas prices increase, as Russia/Ukraine tensions rise

NASHVILLE, Tenn., (January 31, 2022) — For the fourth consecutive week the Tennessee gas price average has increased. Since last Monday, gas prices across Tennessee have risen six cents, on average. The Tennessee Gas Price average is now $3.10 which is 11 cents more expensive  than one month ago and 87 cents more than one year ago.

“Tensions along the Ukrainian border have helped push crude oil prices higher almost daily,” said Stephanie Milani, Tennessee Public Affairs Director, AAA – The Auto Club Group. “If oil prices continue to climb toward $90 a barrel, pump prices will likely follow suit.”

Quick Facts

  • 28% of Tennessee gas stations have prices below $3.00
  • The lowest 10% of pump prices are $2.91 for regular unleaded
  • The highest 10% of pump prices are $3.42 for regular unleaded

National Gas Prices

Uncertainty over Russia’s intentions toward Ukraine is contributing to higher crude oil prices, which are closing in on $90 per barrel. Russia is a member of OPEC+, and any sanctions based on their actions toward Ukraine may cause it to withhold crude oil from the global market. Higher oil prices will lead to higher pump prices for drivers. The national average for a gallon of gas has risen to $3.36, three cents more than a week ago.

According to new data from the Energy Information Administration (EIA), total domestic crude stocks increased by 2.4 million bbl to 416.2 million bbl. The current crude stock level is approximately 13 percent lower than in mid-January 2021, contributing to the pressure on domestic crude prices. Continued growth in crude oil prices has helped maintain elevated pump prices. If oil prices continue to climb toward $90 a barrel, pump prices will likely follow suit.

Today’s national average of $3.36 is eight cents more than a month ago and 94 cents more than a year ago.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by 21 cents to settle at $86.82. The cost of crude oil rose last week despite EIA reporting that total domestic crude stocks increased by 500,000 bbl to 413.8 million bbl. The current crude stock level is approximately 15 percent lower than in mid-January 2021, contributing to pressure on domestic crude prices. For this week, crude prices could continue to climb if EIA’s next weekly report shows a decrease in total inventory.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad, and Android. The app can also map a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more at AAA.com/mobile.

Tennessee Regional Prices 

  • Most expensive metro markets – Memphis ($3.18), Nashville ($3.15), Jackson ($3.12)
  • Least expensive metro markets – Kingsport-Bristol ($3.04), Johnson City ($3.05), Knoxville ($3.05)