Experts: Expect to pay less at the pump this 4th of July than you have in a decade, but TN will see tax increase

ARDMORE, Ala. - This holiday weekend begins the biggest driving holiday of the summer.

GasBuddy.com data reveals you can buy a gallon for less than $2.00 in 35 states. That includes Alabama and Tennessee.

"It's the cheapest I've bought in a long time," one woman told us.

Paul Pierce added, "For just 20 dollars right now I should nearly fill up my truck and it's on a quarter of a tank."

This year's national average price per gallon this 4th of July weekend is $2.21, according to GasBuddy. That's down four cents from the previous year.

It is also the cheapest national average over the 4th of July holiday weekend since 2005.

"It feels good!" said James Harris. "We need a break every once in a while."

"I can get more gas for my money now," Tommy Covey noted.

GasBuddy experts believe it is a myth that fuel prices increase for holidays. Still, many say there should be more savings where this comes from.

"I'd' like to see them go a little bit further," said Harris. "It would be great if they would."

https://www.tn.gov/nexttennessee/section/the-improve-act-main-section

Changes in Tennessee

While the national average price per gallon is down, Tennessee will soon see a tax increase. Under the IMPROVE Act, the gas tax will increase by 4 cents starting Saturday. It will increase another two cents over the next two years.

Tennessee gas station customers say that increase doesn't bother them much.

"I mean, it is what it is," noted Pierce.

Eric Gardner shared the same sentiment.

"You have to pay what you have to pay, whether it goes up or goes down," he said. "It really doesn't matter much to me."

Also changing under the IMPROVE Act starting Saturday, according to the state of Tennessee:

  • Sales tax on food: cut from five percent to four percent
  • Vehicle Registration Fee for passenger motor vehicles will be increased by $5
  • Registration fee for commercial motor vehicles for transporting passengers for hire (buses, taxis) will be increased by $10
  • Registration fee for commercial and freight motor vehicles (semis, tractor trailers) will be increased by $20

Click here to read about more changes under this Act.