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Memorial Day Outlook

AAA projects over 948,000 Tennesseans will travel by car over Memorial Day weekend. That’s over 16,000 more travelers than last year. This year, 84% of Tennessee Memorial Day travelers will take a road trip.

Fortunately, a trip to the gas pump should be lower than last year. On Memorial Day 2024, the national average for a gallon of regular was $3.59 per gallon. In Tennessee, it was $3.17 per gallon. So far this spring, gas prices have avoided the usual seasonal spikes, largely due to lower crude oil costs.

“As summer unofficially begins and travel demand picks up, there’s a chance that pump prices will edge upward,� Cooper said. “Historically, gas prices tend to peak in the spring or summer before gradually easing as schools reopen in the fall.�

National Gas Prices

In the lull between spring travel and the kick-off to summer, gas demand slid week over last week, dropping the national average three cents to land at $3.13. OPEC+ (the group of oil-producing countries) announced last Saturday that it will increase output again in June, widening the supply surplus, which could cause crude prices to continue to fall. This means road trippers would see lower prices at the pump this summer. The national average is 48 cents less than it was one year ago today.

According to new data from the Energy Information Administration (EIA), gasoline demand decreased from 9.09 million b/d last week to 8.71. Total domestic gasoline supply slightly increased from 225.5 million barrels to 225.7. Gasoline production decreased last week, averaging 9.7 million barrels per day.

National Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI fell $1.02 to settle at $58.07 a barrel. The EIA reports that crude oil inventories decreased by 2 million barrels from the previous week. At 438.4 million barrels, U.S. crude oil inventories are about 7% below the five-year average for this time of year.

Tennessee Regional Prices

Most expensive metro markets — Nashville ($2.79), Jackson ($2.77), Johnson City ($2.75)

Least expensive metro markets — Morristown ($2.61), Clarksville ($2.64), Chattanooga ($2.67)

Gas Price Survey Methodology

AAA updates fuel price averages daily at . Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.