After a 5-cent decline over the past week, the statewide and local average price for regular unleaded gasoline is $2.56 per gallon — 17 cents less than this year’s high but still 28 cents more than this time last year.
But GasBuddy and AAA analysts say the drop at the pump could be temporary due to geopolitical developments.
On Friday, President Donald Trump’s administration announced the U.S. would re-impose sanctions against Iranian crude oil lifted in 2015 under the administration of former President Obama. The sanctions, which officially went into effect Monday, target the Iranian energy sector and impede Iran’s ability to sell oil.
"Tennesseans are saving 20 cents per gallon, compared to when gas prices peaked during Memorial Day weekend,” AAA spokesman Mark Jenkins said in a press release. "Gasoline is becoming less expensive to produce and sell thanks to lower crude prices and cheaper-to-produce winter blend fuel. Retail prices have not quite caught up with declines on the wholesale side, so motorists should see another round of discounts this week.
“However, fuel prices definitely have the potential to reverse course based on any fluctuations in the stock market due to Election Day and the activation of U.S. sanctions against Iranian crude. Regardless, AAA believes the highest prices of the year are behind us."
For more information on local, state and national gas price trends, visit www.gasprices.aaa.com or www.gasbuddy.com.