Cheaper prices at the pump for Labor Day travel

GasBuddy, a leading fuel-saving platform that provides North American drivers with ways to save on gas, has released its annual Labor Day travel forecast, predicting that the national average price of gasoline will continue its recent downward trend and fall to $3.27 per gallon on Labor Day, the lowest Labor Day price since 2021. At $3.27 per gallon, the national average this Labor Day would be 50 cents per gallon, or 13 percent, lower than last year's $3.77, giving Americans a total savings of $750 million during the Friday-Monday travel period.

Prices at the pump have fallen since peaking at $3.69 a gallon in mid-April, and lower demand has helped drive down the price of gasoline. In some states, Labor Day prices are significantly lower this year than last year. For example, average gas prices on the West Coast are more than 65 cents lower than a year ago. In Oregon, they're down an average of 90 cents a gallon, in Washington, 87 cents, and in Alaska, 84 cents. And outside the West Coast, gas prices are lower in all 50 states this Labor Day weekend than they were a year ago. According to GasBuddy's May Summer Travel Survey, Labor Day was the least popular summer holiday for road trips, with just over a third of respondents planning a road trip to say goodbye to summer.

“It's been a great summer for drivers, as gasoline prices have generally been lower than last year,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “But as Labor Day approaches, the gap has grown significantly compared to last year, as there have been few refinery outages or heat waves affecting refineries this month. Hurricane season has also been quiet so far. With no threat to the major refineries producing gasoline and diesel, it's becoming increasingly likely that we can avoid a late summer price spike.”

Gas stations in most states will begin switching to winter gasoline on Sept. 16, which will likely accelerate the drop in gas prices. Because gas prices vary from state to state, drivers crossing state lines should check prices in advance to save up to 50 to 90 cents per gallon. Drivers can also save by adding their gas loyalty accounts to the GasBuddy app to earn additional savings at select fueling partners.

“While many Americans wish summer could last forever, the good news is that we may have the best chance in years to get the national average below $3 per gallon,” De Haan added. “With Thanksgiving approaching, tens of thousands of gas stations are likely to eventually drop back below that level thanks to falling seasonal demand and cheaper winter gasoline just around the corner.”