State gas price average dips for eighth straight week

The average per-gallon price of regular gas in Tennessee was $3.28 as of yesterday, a decrease of five cents compared to the figure from the previous week, according to AAA.

This marks the eighth straight week the state has seen prices, on average, dip.

Pump prices have done the exact opposite of what was forecast at the start of the year. Instead of reaching a peak price, gas prices have dropped to about 40 cents less than they were this time last year, AAA reports.

Oil prices also decreased last week after U.S. stocks fell on reports of weak corporate earnings, lackluster demand and a strengthened dollar. The nation's oil output also continues to make gains. According to the Energy Information Administration, oil output rose 0.4 percent during the second week of April, as gasoline demand fell.

At this time last year, retail gas prices were climbing their way to the year’s peak average of $3.94 nationally. During April 2012, motorists paid more than $3.80 a gallon for regular retail gasoline. As of Sunday, the national average price was $3.53, a seven-cent per-gallon decrease. More specifically, and to compare to Tennessee, Georgia’s per-gallon average of $3.40 decreased six cents.

In Nashville, the average per-gallon price of regular gas was $3.31 as of Sunday, a drop of four cents compared to the figure from the previous week. (See chart below.)

"Given the state of supply and demand fundamentals, gas prices will likely continue on this downward path for the next few weeks,” Jessica Brady, AAA spokeswoman, The Auto Club Group, said in a release. “Pump prices are about 40 cents less than they were a year ago and the price gap is expected to widen.”

A barrel of oil closed Friday at $88.01 on the New York Mercantile Exchange — $3.60 less than the mark  from the prior week.