Gas prices trend lower heading into Labor Day weekend

Aug 30, 2024 – Labor Day gasoline prices are dipping into the weekend compared to last year. That’s according to the U.S. Energy Information Administration. 

“The retail price for all formulations of regular gasoline in the United States averaged $3.31 per gallon (gal) on August 26, 2024, 13 percent lower than this time last year,” U.S. EIA reports. “The decrease in prices paid at the pump was driven by weak growth in global and U.S. petroleum product demand, continued crude oil production growth from countries outside of OPEC+, and China’s slowing economy.”

The cost of crude oil is a major driver of the price of gasoline; and it is estimated the crude oil price contributed 55 percent to the price of gasoline as of June 2024. The Brent crude oil price decreased four percent from the same time last year and was $81 per barrel on Aug. 26. Costs for refining crude oil, distribution and marketing of gasoline, and taxes make up the other components of retail gasoline prices.

According to GasBuddy, the average price of gas will continue its recent downward trend, falling to $3.27 per gallon on Labor Day, the lowest Labor Day price since 2021. At $3.27 per gallon, this Labor Day’s national average would be 50 cents per gallon, or 13% below last year’s $3.77 tally, saving Americans a combined $750 million over the Friday-through-Monday travel period.

Since peaking at $3.69 per gallon in mid-April, prices at the pump have eased, with lower demand helping to bring the price of gas down. Some states are seeing significantly lower Labor Day prices this year compared to last year. For instance, average gas prices on the West Coast stand over 65 cents lower than a year ago, with Oregon’s average down 90 cents per gallon, while Washington is down 87 cents and Alaska 84 cents. And, outside of the West Coast, all 50 states will see lower gas prices this Labor Day weekend than a year ago. According to GasBuddy’s summer travel survey in May, Labor Day was the least popular summer holiday to hit the road, with just over a third of respondents planning to road trip to bid farewell to summer.

In Mississippi, the average price for regular unleaded gasoline on Friday, Aug. 30 was $2.876 a gallon which was down almost a nickel from a week ago and down nearly a dime from a month ago. One year ago, the average price of gas was $3.305.