Labor Day Gas Prices Expected to Hit Lowest in 5 Years

Gas prices over Labor Day weekend are expected to be the lowest in five years, according to an analysis by GasBuddy.

The fuel savings platform predicted on Tuesday that the average price at the pump this year will be $3.15 per gallon, which is 14 cents lower than the same time last year and the lowest since Labor Day 2020.

"Labor Day marks the unofficial end of summer, and when it comes to gas prices, it's been the cheapest summer to hit the road since the pandemic, a trend that will likely continue with the potential for the national average to fall below $3 per gallon this fall," Patrick De Haan, head of petroleum analysis at GasBuddy, said in a statement.

"We've seen a remarkably affordable summer to hit the road with incomes up and gas prices down, but there are some challenges that remain: hurricane season and uncertainty over trade, tariffs, and Russia's war on Ukraine," he added. "However, I remain optimistic that as cooler weather invades, gas prices too, will seasonally cool off."

The average cost of fuel last year was $3.29 per gallon and $3.77 per gallon in 2023, according to the company's analysis.

While it will be the most affordable Labor Day weekend since 2020 to fill up, gas prices in nearly half of all states have risen over the last month due to localized refinery outages.

But drivers can expect more relief in the coming weeks, GasBuddy said, as much of the nation switches over to cheaper winter gas in mid-September. Demand for gasoline will also soon begin to fall as summer ends, as drivers take fewer road trips and as temperatures start to cool.