Tennessee's per-gallon gas price average rises 5 cents

The average per-gallon price of regular gas in Tennessee was $3.12 as of yesterday, an increase of five cents compared to the figure from the previous week, according to AAA.

In comparison, the national average price was $3.29, a four-cent per-gallon increase.  

"Almost everything is riding on whether or not a deal is made to avoid the fiscal cliff,” Jessica Brady, AAA spokeswoman, The Auto Club Group, said in a release. "If the fiscal cliff is not avoided and the economy falls back into a recession, we’re sure to see gas prices drop as fuel demand recedes. If a plan is put into place, gas prices will likely continue to increase throughout January, however it’s doubtful we will see an immediate spike in fuel demand.”

Currently, oil prices are holding steady at about $90 a barrel as a deal on the fiscal cliff remains unknown and U.S. gasoline stockpiles are at a nine-month high as demand continues to wane, AAA reports.