Tennessee Gas Prices Could Hit A New Low This Week With Tax Increase Looming

NASHVILLE, TN — The price of gas in Tennessee fell for the 20th straight day Sunday and it's a trend likely to continue this week, according to AAA, which may mean per-gallon prices hit an annual low a little more than a week before a fuel tax increase goes into effect.

The auto club said the average price for a gallon of regular in Tennessee is $2.05, the fifth lowest per-gallon average in the country, and barring unforeseen circumstances, AAA predicts it will keep creeping down this week to hit a 2017 low, just before the state adds 4 cents back to the total July 1. (For more updates on this story and free news alerts for your neighborhood, sign up for your local Middle Tennessee Patch morning newsletter.)

The IMPROVE Act, Gov. Bill Haslam's transportation improvement plan, included a phased-in 6-cent increase in the state's gas tax. The first 4 cents will be added July 1 with an additional penny in 2018 and 2019. In exchange, the state portion of the food tax will drop from 5 percent to 4 ad a variety of other manufacturing and excise taxes will be axed.

In any event, even with a four-cent increase, on current prices, Tennessee would still have some of the most affordable gas in the country.

Among the state's metros, Nashville has the highest average gas prices at $2.09 with the cheapest — $1.95 — in Chattanooga, as is standard.

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