The state average dropped 2 cents last week, and motorists should see another round of falling prices this week.
“Gas prices were knocked off their seasonal upward trend, when new data revealed record-high refinery activity, setting off market concerns of a gasoline glut,” said Mark Jenkins, spokesman for AAA. “When refineries finished spring maintenance season, they accelerated production to levels that have outpaced demand. Because of this unexpected shift in fundamentals, motorists have likely seen the highest prices for the foreseeable future and retail prices should fall a few more cents this week.”
The Tennessee average retail price of $2.15 is 24 cents less than the national average, according to data provided by AAA, from a collection of 120,000 gas stations nationwide, based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service and Wright Express for unmatched statistical reliability.
April gas prices reached their highest monthly average in two years. According to historical AAA data, Tennessee gas prices averaged $2.15 in April, with daily retail prices ranging between $2.06 to $2.18 per gallon.
The most expensive Tennessee gas prices were in Knoxville at $2.17, Memphis at $2.17 and Nashville at $2.16. The least expensive Tennessee gas prices were in Clarksville at $2.08, Chattanooga at $2.10 and Johnson City at $2.13.
Crude oil prices slipped to the lowest weekly average in a month at $49.43.
Wholesale gasoline futures prices plummeted last week, falling to the lowest level in 8 weeks.
U.S. crude inventories decreased slightly but remain near the upper limit of the average range.
Domestic crude production climbed by 13,000 barrels per day. Gasoline demand remains muted so far this year. Demand has been unable to match last year’s record highs, spurred by low pump prices. Gasoline supplies rose 1.4 percent last week and nearing last year’s levels. Gasoline production ramped up by 4.3 percent. Refineries are humming along at record levels in the wake of stagnate demand.