Tennessee Gas Prices Drop But Potential Rail Strike Could Have Impacts

Image: Pilot Travel Center #114 in Crossville, TN Image Credit: pilotflyingj.com

The Center Square [By Jon Styf] –

Tennessee has the sixth-cheapest average gas price in the country as prices drop toward $3 per gallon, according to data from AAA.

Tennessee’s average was $3.23 on Wednesday after entering the week at $3.26. Texas, Mississippi, Arkansas, Louisiana and Georgia were the only states lower.

The national average was $3.70 as of Wednesday.

“Less expensive oil usually leads to less expensive gas for drivers,” said Andrew Gross, AAA spokesperson. “This trend has helped pump prices fall steadily for three straight months and, with fall approaching, more markets could soon see prices below $3 per gallon.”

Tennessee’s price were gallon was down 11 cents from a week before and 27 cents from a month ago but is up from a $2.89 average on this date in 2021.

While the prices and expectations continue to drop, the national average might not reach $3 per gallon, according to GasBuddy analyst Patrick De Haan.

“National average continues to fall on pace with expectations, remember this is a projection if oil prices don’t materially rise in the weeks ahead, where #gasprices could go,” DeHaan tweeted on Monday. “As of today, I don’t know that we’ll get as low as $2.99 for a national average.”

One thing that could impact the price significantly is a national railroad strike, which could come as soon as this week.

“#GasPrices could jump 35-75c/gal if a railroad strike lasted more than a few days, should the shipment of these components impact refiners production abilities,” DeHaan wrote. “Gasoline inventories could quickly draw. It’s a situation to watch carefully.”