Memphis Becomes Tennessee’s Priciest Metro as Gasoline Jumps Past $3 Amid Oil Market Shock

A fast statewide increase pushes Memphis to the top of Tennessee’s metro price list

Gasoline prices across Tennessee moved sharply higher in early March, with Memphis emerging as the state’s most expensive major metro market as the statewide average rose above $3 per gallon for the first time since August 2024. In the Memphis area, the average price for regular unleaded reached $3.038 per gallon on March 9, up from $3.005 the day before and $2.625 a week earlier.

Statewide, the average for regular unleaded stood at $3.03 on March 9—up about 42 cents over the prior week. Over a longer horizon, that level was about 48 cents higher than one month earlier and roughly 35 cents above the year-ago mark.

What’s driving the spike: crude oil costs, not local fuel shortages

The latest increase has been tied primarily to a jump in crude oil prices. Crude rose sharply over the prior week, with a reported Friday close near $90.90 per barrel—described as the highest level since September 2023. Market pressure intensified as oil shipping through the Strait of Hormuz halted due to safety concerns, a disruption affecting a route that typically handles about one-fifth of the world’s oil.

Despite the global supply shock, fuel deliveries in the United States have been described as continuing without interruption, with retail stations supplied as normal. The immediate upward movement at the pump has been attributed to higher crude costs rather than an on-the-ground shortage of gasoline.

Memphis vs. other Tennessee metros: where prices stand

Metro averages compiled for March 9 show Memphis at the top end of Tennessee’s major markets, while several East Tennessee metros remained below the statewide average.

• Most expensive metro markets: Nashville ($3.103), Chattanooga ($3.072), Clarksville ($3.06), Memphis ($3.038)
• Least expensive metro markets: Knoxville ($2.955), Morristown ($2.95), Kingsport ($2.97)

National context: prices rising into spring travel season

The national average price for regular gasoline climbed to $3.47 per gallon as of March 9, up about 48 cents from the prior week. The run-up is occurring as spring approaches, a period that typically brings seasonal upward pressure as demand increases and refineries shift to summer-blend gasoline.

How much further prices rise is expected to depend on the duration of the Iran-related conflict, the timeline for resumed shipping through the Strait of Hormuz, and broader supply-and-demand adjustments.

For Memphis-area drivers, the key variable in the near term remains the direction of crude oil prices. With local supply described as stable, retail prices are likely to continue tracking international oil-market conditions and the pace at which higher wholesale costs filter through to station signs.