NASHVILLE, Tenn. (WOKI – July 6, 2026) — Tennessee drivers are seeing modest relief at the pump as gas prices across the Volunteer State fell by two cents over the past week, according to AAA.
The statewide average for regular unleaded gasoline now stands at $3.36 per gallon, making Tennessee the fourth least expensive gasoline market in the country. The current average is 42 cents lower than one month ago, although it remains 63 cents higher than this time last year.
AAA spokesperson Megan Cooper said drivers benefited from several weeks of declining prices leading into the Independence Day holiday travel period.
“Tennesseans that took a road trip over the holiday weekend were met with the most expensive Independence Day gas prices in four years,” Cooper said. “Gas prices across the state saw several weeks of declines ahead of Independence Day, which gave drivers a much needed break at the pump.”
Despite recent declines, Tennessee motorists paid an average of $3.39 per gallon on July 4, which was 64 cents higher than last year’s holiday price. However, prices remain well below the record-high holiday average of $4.42 per gallon in 2022.
Knoxville Among Lowest-Priced Markets
East Tennessee continues to offer some of the state’s most affordable gasoline. AAA reports Knoxville’s average gas price is now $3.26 per gallon, placing it among the least expensive metropolitan areas in Tennessee.
The state’s lowest-priced metro areas are:
- Clarksville: $3.08
- Knoxville: $3.26
- Morristown: $3.28
Meanwhile, the most expensive metro markets are:
- Memphis: $3.50
- Jackson: $3.43
- Johnson City: $3.39
National Prices Continue to Ease
Nationally, the average price for regular gasoline has fallen to $3.79 per gallon, down 40 cents from a month ago. While prices remain higher than a year ago, they are significantly lower than the spring peak of $4.56 per gallon reached on May 21.
AAA says declining crude oil prices have contributed to the recent downward trend. U.S. benchmark West Texas Intermediate crude settled at $68.58 per barrel in the latest trading session.
According to the U.S. Energy Information Administration, gasoline demand increased last week, while domestic fuel supplies declined slightly. Crude oil inventories fell by 3.8 million barrels, leaving U.S. stockpiles about 7% below the five-year average for this time of year.
Tennessee Metro Averages
- Knoxville: $3.269
- Chattanooga: $3.296
- Nashville: $3.380
- Memphis: $3.500
AAA updates fuel price averages daily through its nationwide survey of up to 130,000 gas stations. Current fuel prices can be found at GasPrices.AAA.com.
