Statewide average updated daily • Source: AAA
Tennessee consistently ranks among the cheapest states for gasoline in the entire country, typically running 15 to 35 cents below the national average. The state benefits from a low flat tax rate, excellent pipeline access from Gulf Coast refineries, a highly competitive retail market anchored by some of the busiest highway corridors in the Southeast, and the presence of major discount fuel retailers that have made Tennessee a benchmark for low-cost fuel across the region.
Tennessee’s state gas tax is 26 cents per gallon, below the national average. The state does not apply general sales tax to gasoline in a way that significantly adds to the burden, keeping the total tax cost among the lower tier nationally.
Tennessee sits in an excellent geographic position for fuel supply. The Colonial Pipeline runs through the state and multiple fuel terminals serve the major metro areas. Nashville, Knoxville, Memphis, and Chattanooga all have strong wholesale fuel infrastructure that keeps supply reliable and transportation costs to retail stations low.
The competitive retail environment in Tennessee is notable — the state has a high concentration of large format discount fuel retailers and travel centers that compete aggressively on price, pulling the statewide average down. The I-40 and I-65 corridors through Tennessee are among the most competitive fuel markets in the Southeast.
Did you know? Tennessee is consistently one of the top five cheapest states for gas in the country, a distinction held for most of the past two decades. The stretch of I-40 through Tennessee is one of the most heavily traveled truck corridors in the country, and the concentration of truck stops competing for commercial fuel business drives prices down for all drivers. Tennessee is home to Pilot Flying J headquarters in Knoxville — one of the largest truck stop and travel center operators in North America — which contributes directly to the state’s highly competitive fuel retail environment.
Compare today’s average in Tennessee with nearby states to understand regional price differences.
Learn more about what drives gas prices across the United States.
Crude oil prices are the biggest driver of what you pay at the pump. For U.S. and global crude oil production data updated from EIA figures, see Oil Production Live.