GasBuddy, a leading fuel savings platform, has released its annual Labor Day travel forecast, predicting that the national average price of gas will continue its recent downward trend, falling to $3.27 per gallon on Labor Day. This price is the lowest Labor Day price since 2021, and it represents a significant decrease from last year’s average of $3.77 per gallon. According to GasBuddy, this decrease will save Americans a combined $750 million over the Friday-through-Monday travel period.
The decrease in gas prices can be attributed to lower demand, which has helped bring prices at the pump down. Since peaking at $3.69 per gallon in mid-April, gas prices have been on a downward trajectory. Some states are experiencing significantly lower Labor Day prices this year compared to last year. For example, average gas prices on the West Coast are over 65 cents lower than a year ago, with Oregon’s average down 90 cents per gallon, Washington down 87 cents, and Alaska down 84 cents. Additionally, all 50 states will see lower gas prices this Labor Day weekend compared to last year.
Despite the lower prices, GasBuddy’s summer travel survey in May revealed that Labor Day was the least popular summer holiday for road trips, with just over a third of respondents planning to hit the road to bid farewell to summer. Patrick De Haan, head of petroleum analysis at GasBuddy, commented on the current gas prices, stating, „It’s been a great summer for motorists to hit the road with gas prices generally lower than last year.“
Gas stations in most states will begin transitioning to winter blend gas on Sept. 16, which is expected to further accelerate the decline in gas prices. Drivers crossing state lines are advised to check prices in advance, as prices can vary significantly from state to state. By adding their fuel loyalty accounts to the GasBuddy app, motorists can also save additional money at select fueling partners.
Looking ahead, De Haan expressed optimism about the potential for gas prices to fall below $3 per gallon in the near future. He noted that as we approach Thanksgiving, tens of thousands of stations may see prices drop below this threshold, thanks to falling seasonal demand and cheaper winter gasoline.
In conclusion, GasBuddy’s annual Labor Day travel forecast provides valuable insights for North American drivers looking to save money on gas. With gas prices expected to continue their downward trend, motorists have the opportunity to enjoy savings at the pump this holiday weekend and beyond. By staying informed and utilizing tools like the GasBuddy app, drivers can make the most of these cost-saving opportunities.