Gas Prices In Tennessee Have Dropped By Another Penny Over The Past Week, Bringing The Statewide Average To $2.78 Per Gallon. That’s 33 Cents Less Than This Time Last Year. Megan Cooper With Aaa Says Lower Crude Oil Prices And Weak Gasoline Demand Are Likely To Keep Prices Down In The Short Term. Jackson Has The Highest Average Price In The State At $2.85, While Morristown Has The Lowest At $2.70. Nationally, The Average Price Is $3.13 Per Gallon.