Gas prices across the state fluctuated slightly higher over last week, but fell through the weekend to only a penny more expensive than last week. The Tennessee Gas Price average is now $2.57 which is 12 cents less expensive than one month ago and six cents less than one year ago.

“Right now, Tennesseans are seeing the cheapest gas prices in four years,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “While it’s possible that we could see some fluctuation in pump prices around the holidays, it’s likely that prices will remain low through the holidays and the end of the year, which is a nice gift for drivers planning a holiday road trip.”

Christmas Gas Price Outlook

Tennessee drivers are currently seeing gas prices similar to a year ago, and today’s average is 12 cents cheaper than what drivers paid on Christmas Day 2024, when the state gas price average was $2.69. If our state gas price average stays below $2.69, it will be the cheapest Christmas gas prices since 2020, when the state gas price average was $2.03/gallon.

National Gas Prices

The holiday season is delivering a gift for drivers as the national average dropped 5 cents since last week to $2.90. Gas prices are the lowest they’ve been in four years. The national average has stayed below the $3 mark since hitting $2.99 on December 2. As a record number of travelers prepare to hit the road later this month, they’ll be paying less than they were last holiday season when the national average was $3.04 to close out 2024.