Gas Goes Up Three Cents

Tennessee gas prices rose three cents, on average, over last week . The Tennessee Gas Price average is now $2.79 which is a penny less expensive than one month ago and 19 cents less than one year ago.

"Spring is just around the corner, which is when refineries typically begin the transition from winter to summer blend fuel. This usually brings a gradual uptick in gasoline prices," said Megan Cooper, spokeswoman, AAA - The Auto Club Group. "Tennessee drivers can likely expect to see additional fluctuations in pump pricing this week. The good news, however, is that several parts of the state are seeing prices cheaper than both one month and one year ago."

National Gas Prices

As spring approaches, refineries are beginning their transition to summer blend fuel, which often results in higher prices this time of year. This week, gas prices rose by a few cents, bringing the national average to $3.16 per gallon. Routine seasonal maintenance and an offline refinery in Northern California are putting additional strain on supply. These factors are pushing gas prices up, which means consumers may see higher prices at the pump as warmer months approach.

According to new data from the Energy Information Administration (EIA), gasoline demand increased from 8.32 million b/d last week to 8.57. Total domestic gasoline supply dropped from 251.1 million barrels to 248.1, while gasoline production increased last week, averaging 9.3 million barrels per day.

Today's national average for a gallon of gas is $3.16, five cents more than a month ago but 12 cents less than a year ago.

National Oil Market Dynamics

At the close of Wednesday's formal trading session, WTI dropped $1.95 to settle at $71.37 a barrel. The EIA reports that crude oil inventories increased by 4.1 million barrels from the previous week. At 427.9 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.

Tennessee Regional Prices

• Most expensive metro markets - Jackson ($2.84), Johnson City ($2.83), Nashville ($2.81)
• Least expensive metro markets - Clarksville ($2.69), Chattanooga ($2.71), Cleveland ($2.77)