Labor Day Motorists Receive an Unexpected Treat at the Pump as Prices Drop Rapidly | Carscoops

      Prices are anticipated to keep declining and may fall below $3 per gallon this autumn.

      Gas prices for Labor Day are the lowest they've been since 2021, with the national average for regular unleaded at $3.190 per gallon. This marks a notable decrease from last year’s average of $3.332 per gallon.

      Despite a recent increase in prices caused by flooding at a refinery in Indiana, GasBuddy's data shows that the prices for Labor Day are the most affordable since 2021, when regular unleaded was at $3.16 per gallon. However, current prices are still significantly higher than in 2020, when gas was priced at $2.22 per gallon as Americans headed to barbeques.

      The outlook is expected to improve further as refineries begin switching to less expensive winter gasoline in mid-September. Additionally, demand is projected to decline with the unofficial end of summer, which typically leads to fewer road trips.

      Patrick De Haan, GasBuddy’s head of petroleum analysis, remarked, “This summer has been remarkably affordable for travel with rising incomes and lower gas prices, but challenges persist, including hurricane season and uncertainties around trade, tariffs, and Russia’s war on Ukraine.” He also suggested that prices might drop to below $3 per gallon this fall.

      AAA has expressed that while gasoline could fall beneath $3, there are “too many variables to make a prediction” due to the “volatile” nature of the oil market. Nonetheless, they mentioned that as long as there are no significant geopolitical incidents or tropical storms affecting the Gulf Coast, drivers can expect to see lower prices at the pump as summer comes to a close.

      It’s important to note that gas prices vary significantly depending on location. For instance, Californians are paying an average of $4.612 this Labor Day, while prices in Texas are as low as $2.769 per gallon.