Given that gas prices are predicted to be at their lowest point for the holiday in three years, American drivers may be saving a large amount of money at the pump this Labor Day.
According to GasBuddy’s annual travel forecast for Labor Day, the average national gas price will drop to $3.27 per gallon, continuing a recent decreasing trend. According to the prediction, cars would spend 13% less, as the price would be 50 cents less than the $3.77 average that was reported a year ago.
According to GasBuddy’s projections, Americans will save over $750 million this Labor Day at the gas pump compared to the three-day weekend in 2023.
“It doesn’t feel too bad compared to two summers ago, when you could find the stray $6 price across Chicago,” Patrick De Haan, head of petroleum analysis at GasBuddy stated. “Prices have basically been in a free fall since mid-July,” he further added.
Since peaking at $3.69 per gallon in mid-April, gas prices have been declining, partly due to decreased demand and fewer refinery outages. The U.S. Energy Information Administration (EIA) reports that gasoline stockpiles in the country are 3% higher than they were a year ago.
“We’re seeing perhaps the best opportunity in years for the national average to fall below $3 per gallon,” De Haan stated.
De Haan pointed out that lower winter fuel prices and a decline in seasonal demand are expected, meaning that tens of thousands of gas stations nationwide may offer sub-$3 gas closer to Thanksgiving.
“The arrival of September means cheaper winter-blend gasoline is almost here, which always helps take pressure off pump prices,” Andrew Gross of AAA stated. He said that there could be more drops in gas prices due to weak demand and falling oil costs.
According to the EIA, the West Coast usually pays more for gas due to a number of variables, including its limited links with other major refining hubs, such as the Gulf Coast, and its demand for gas characteristics that are more expensive to manufacture.
The Midwest saw a little uptick in gas prices last month due to refinery outages caused by storms.
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Hurricane Debby made landfall in Florida earlier this month and put Gulf Coast oil output in jeopardy, but the federal agency stated that in the end, neither refinery operation nor petroleum demand was greatly impacted.
According to a breakdown by AAA, Hawaii has the highest average gas prices at $4.65 per gallon, followed by California and Washington at $4.62 and $4.16, respectively. The average price of a gallon of gas is $3.96 in Nevada and $3.79 in Oregon.
On the other hand, the lowest average price of petrol is found in Mississippi ($2.88), followed by Oklahoma ($2.94), and Texas ($2.94). Gas prices are $2.95 in Tennessee and $2.96 in Louisiana, respectively, for a gallon of fuel.
