The non-profit organization American Automobile Association (AAA) reported on Monday that Tennessee reached average gas prices above $3.00 per gallon. AAA data shows gas prices jumped 12 cents over the last week, leading to an average of $3.01 per gallon in the Volunteer State.
Tennessee made the nation’s top 10 weekly largest increases in gasoline prices. The other areas that made the list include Washington, D.C. (+17 cents), Kentucky (+15 cents), Indiana (+15 cents), Florida (+13 cents), Michigan (+12 cents), Alabama (+12 cents), South Carolina (+11 cents), Illinois (+10 cents), and Delaware (+10 cents).
The nation’s top 10 most expensive gasoline averages by state were California ($4.44), Hawaii ($4.12), Nevada ($3.87), Washington ($3.85), Oregon ($3.75), Idaho ($3.72), Alaska ($3.71), Utah ($3.70), Colorado ($3.52) and Wyoming ($3.51).
The national average of gasoline is currently $3.27 per gallon – which is 10 cents more than a month ago, $1.09 more than a year ago, and 63 cents more than pre-pandemic in 2019.
AAA cites the primary reason for gasoline price increases is due to the surging price of crude oil, which crept above $80 bbl before edging slightly lower.
“The key driver for this recent rise in the price of gas is crude oil, which typically accounts for between 50% and 60% of the price at the pump,” said AAA Spokesperson Andrew Gross. “And last week’s decision by OPEC and its oil-producing allies to not increase production further only exacerbated the upward momentum for crude oil prices.”
Crude prices rose quickly following OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC), Russia, and their allies, choosing not to move forward with an agreement to produce 800,000 b/d in November. Instead, OPEC+ decided to maintain a previously agreed upon 400,000 b/d production increase.
Despite being below the national average at $3.01 per gallon, now is the first time since 2014 that Tennessee has seen average gasoline prices above $3.00 per gallon.
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