Top line
Travelers traveling over Labor Day weekend can look forward to lower gas prices than last year—and possibly the lowest prices since 2021—as gasoline prices continue to drop as usual at the end of summer.
People fill their vehicle’s gas tank while looking at a meter at a gas station in Glenview, Illinois. … (+)
Key data
According to GasBuddy’s annual Labor Day travel forecast, the average price of gasoline will fall to $3.27 by Monday. That would be the lowest Labor Day price since three years ago, when gas averaged $3.16 per gallon.
If the price per gallon on Monday is $3.27, that would be a decrease of 50 cents per gallon from last year’s price of $3.77 per gallon.
The falling prices are at least partly due to lower demand, according to GasBuddy, and AAA’s Andrew Gross said last week: “The war clouds overseas are less gloomy at the moment and it is also now quiet over the Atlantic, which is easing pressure on oil prices,” referring to a relative lull in hurricane activity recently.
Before the holiday weekend, prices are highest in Hawaii ($4.66), California ($4.61), Washington ($4.18) and Nevada ($3.97), and lowest in Oklahoma ($2.89), Mississippi ($2.89), Texas ($2.95) and Tennessee ($2.96), according to AAA.
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Large number
750 million dollars. According to GasBuddy, that’s how much money Americans will save on gasoline during the travel period from Friday to Monday compared to last year.
Contra
While gasoline prices are falling, the national average cost per kilowatt-hour for Level 2 commercial electric vehicle charging — commonly used in homes and public charging stations — has remained stable for about a month, AAA reported Aug. 22. At that time, the national average for a kilowatt-hour of electricity at a Level 2 commercial charging station was 34 cents. According to AAA’s latest update, the most expensive states for commercial charging are Hawaii (56 cents), West Virginia (45 cents) and South Dakota (43 cents), while Kansas (21 cents), Missouri (24 cents) and Delaware (25 cents) are the least expensive states.
Surprising fact
The lowest price per gallon of gasoline over Labor Day weekend in the last decade was $2.20 in 2016, followed by $2.22 in 2020. In 2016, prices fell quickly after it was clear that Hurricane Hermine would not affect gas production at Gulf Coast refineries, AAA reported. In 2020, gasoline prices were low around Labor Day because the COVID-19 pandemic had many working from home and not traveling, resulting in low demand.
What you should pay attention to
If gas prices continue to fall in the fall, GasBuddy’s Patrick De Haan said in a press release that this year “may be the best opportunity in years to get the national average below $3 a gallon.” He said the closer we get to Thanksgiving, the more gas stations should drop below $3 due to lower seasonal demand and cheaper winter gasoline.
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