Gas prices in the state of Tennessee decreased another 8 cents on average recently and consumers could be looking at up to a 50 cent decrease by Christmas. The national average price for regular unleaded gasoline could test $2.50 by Christmas, and likely will fall to the lowest level since 2009 in a matter of days. According to a fuel price report by AAA Today’s average of $2.67 per gallon is the least expensive since Feb. 23, 2010. As crude oil costs continue to slide, gas prices are poised to fall even further in the next several weeks. The price at the pump has already tumbled by more than one dollar ($1.03) since the 2014 peak of $3.70 per gallon in April. The national average has dropped a dime from one week ago, 27 cents from one month ago and 60 cents per gallon from the same date last year. Tennessee’s national average price as of Tuesday was $2.48 cents meaning the decrease could take gas prices down to $2.00 a gallon The average price for retail gasoline historically declines from fall into winter due to a number of factors including decreased demand. Consumers can expect to see the price at the pump tick lower as we approach the New Year, however, crude oil would have to fall by another $25 to $30 per barrel to cause the national average to drop below the $2.00 per gallon threshold this winter, which remains unlikely. The price of oil accounts for approximately two-thirds of the price at the pump, and a $10 per barrel drop in the price of crude oil results in about a 25-cent drop in retail prices for motorists.
