NASHVILLE, Tenn. (WOKI) – Tennessee drivers saw a modest decrease in gas prices over the past week, but fuel costs remain significantly higher than they were a year ago.
According to AAA – The Auto Club Group, the statewide average price for a gallon of regular unleaded gasoline fell three cents during the past week to $3.80 per gallon. While the decline provides some relief for motorists, prices are still 25 cents higher than a month ago and $1.19 more expensive than this time last year.
AAA spokeswoman Megan Cooper said the recent drop is welcome news, but higher fuel costs continue to affect household budgets.
“The three-cent drop is welcome, but gas prices are still putting pressure on family budgets,” Cooper said. “Drivers can help stretch their fuel dollars by combining errands, comparing prices before filling up and keeping their vehicle properly maintained.”
The higher prices are making a noticeable difference at the gas station. AAA estimates Tennessee drivers now pay nearly $57 to fill a 15-gallon tank, compared to about $39 during the same period last year.
Knoxville and East Tennessee Prices
The average price for a gallon of regular gasoline in the Knoxville area is $3.80, slightly below the Tennessee average. Morristown continues to be among the state’s least expensive metro markets at $3.71 per gallon, while Chattanooga drivers are paying approximately $3.72 per gallon.
Across Tennessee, the most expensive metropolitan areas for gasoline are:
- Memphis: $3.91
- Jackson: $3.89
- Nashville: $3.80
The least expensive metro markets are:
- Clarksville: $3.65
- Morristown: $3.71
- Chattanooga: $3.72
National Trends
Nationally, the average price of regular gasoline declined one cent over the past week to $4.28 per gallon. Analysts attribute part of the decrease to the seasonal transition to winter-blend gasoline, which is cheaper to produce. However, elevated crude oil prices have limited larger declines at the pump.
Crude oil prices have remained near $100 per barrel amid ongoing concerns over instability in the Strait of Hormuz. The Energy Information Administration reported U.S. crude oil inventories fell by 3.1 million barrels last week, while gasoline demand increased from 8.40 million to 8.98 million barrels per day.
AAA says October 2026 is on track to become the most expensive October on record for gasoline prices, following record-setting fuel costs earlier this year.
Tennessee Gas Prices (Monday)
- Tennessee: $3.809
- Knoxville: $3.802
- Chattanooga: $3.727
- Nashville: $3.804
- Memphis: $3.914
