NASHVILLE, Tenn., (January 12, 2026) — Gas prices across the state moved lower over last week, falling six cents, on average. The Tennessee Gas Price average is now $2.44 which is 15 cents less expensive than one month ago and 29 cents less than one year ago.
“Right now, Tennesseans are seeing seasonally low gas prices that we would expect this time of year,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “It’s likely that pricing will remain low in the short term thanks to ample supply and lower demand this time of year.”
National Gas Prices
The new year begins with the lowest national average in years at $2.79. The last time the national average for a gallon of regular gas was this low was back in March of 2021. Crude oil prices remain relatively unchanged from the end of 2025 and unaffected amid questions about Venezuela’s impact on the oil market. Currently, the global oil supply is strong, as OPEC+, the coalition of oil-exporting countries, says it’s not planning any production hikes in the first quarter of 2026 due to lower demand.
According to new data from the Energy Information Administration (EIA), gasoline demand decreased last week from 8.56 million b/d to 8.17
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI fell $1.14 to settle at $55.99 a barrel. The EIA reports crude oil inventories decreased by 3.8 million barrels from the previous week. At 419.1 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year.
Tennessee Regional Prices
- Most expensive metro markets – Nashville ($2.52), Jackson ($2.51), Memphis ($2.45)
- Least expensive metro markets – Morristown ($2.34), Knoxville ($2.36), Chattanooga ($2.39)
Tennessee Gas Price Averages
(Price per gallon of regular unleaded gasoline)
 |
Monday |
Sunday |
Week Ago |
Month Ago |
One Year Ago |
|
Tennessee |
$2.447 |
$2.430 |
$2.502 |
$2.599 |
$2.735 |
|
Chattanooga |
$2.398 |
$2.375 |
$2.485 |
$2.548 |
$2.628 |
|
Knoxville |
$2.368 |
$2.373 |
$2.426 |
$2.561 |
$2.731 |
|
Memphis |
$2.451 |
$2.448 |
$2.494 |
$2.596 |
$2.773 |
|
Nashville |
$2.528 |
$2.482 |
$2.606 |
$2.673 |
$2.776 |
|
Click here to view current gasoline price averages |
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Gas Price Survey Methodology
AAA updates fuel price averages daily at www.GasPrices.AAA.com. 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.
About AAA – The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America with more than 13 million members across 14 U.S. states and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking and financial services, travel offerings and more. ACG belongs to the national AAA federation with more than 65 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety. For more information, get the AAA Mobile app, visit AAA.com, and follow us on social media.
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