After weeks of falling prices, the average gallon of gas in the state rose to $2.46 per gallon for regular unleaded, a jump of five cents.
“The majority of motorists can expect more expensive gas prices throughout July, but the national average is still not likely to hit $3 per gallon,” said Stephanie Milani, Tennessee Public Affairs Director, AAA. “In addition to rising gasoline demand, 13 states this month have introduced new gas taxes that have contributed to the national average increase.”
Tennessee is one of those states with a new gas tax, which was part of Gov. Bill Haslam’s IMPROVE Act. The act, which was passed in 2017, aims to increase the Tennessee gas tax by six cents incrementally over three years. 2019 is the final year of the increase, with taxes increasing by one cent.
Nationally, the average gallon of gas is $2.75, with little movement from last month.
On the crude oil market, AAA notes that without a trade deal between the United States and China, prices could continue to decrease. But if tensions with Iran continue to escalate, that could send prices surging.