August 25, 2025 — Gas prices increased in almost all of Tennessee’s metro areas last week, except for Knoxville. The Tennessee Gas Price average is now $2.77. Likewise, the national average of a gallon of gasoline is up by three cents. Although prices are more expensive compared to last week, they are still lower than last year by almost 20 cents.
National Gas Prices
The National average is $3.16, three cents higher than last week, but 19 cents less than one year ago. Last week, the national average hit $3.13 on August 21 – a daily average not seen since 2020 on the same day.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI rose 86 cents to settle at $63.21 a barrel. The EIA reports crude oil inventories decreased by 6 million barrels from the previous week. At 420.7 million barrels, U.S. crude oil inventories are about 6% below the five-year average for this time of year.
Tennessee Gas Price Averages
(Price per gallon of regular unleaded gasoline)
 |
Monday |
Sunday |
Week Ago |
Month Ago |
One Year Ago |
|
Tennessee |
$2.77 |
$2.76 |
$2.74 |
$2.80 |
$2.94 |
|
Chattanooga |
$2.74 |
$2.71 |
$2.67 |
$2.76 |
$2.81 |
|
Knoxville |
$2.70 |
$2.70 |
$2.72 |
$2.75 |
$2.94 |
|
Memphis |
$2.82 |
$2.79 |
$2.79 |
$2.81 |
$2.99 |
|
Nashville |
$2.82 |
$2.82 |
$2.79 |
$2.85 |
$2.96 |
|
Click here to view current gasoline price averages |
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Gas Price Survey Methodology
AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day, up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.
About AAA – The Auto Club Group
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