Labor Day gas prices are expected to be the lowest in 16 years, according to a national survey by the travel and navigation app GasBuddy.
The company predicts a national average of $2.19 per gallon, down nearly 37 cents from last year, and the lowest price on Labor Day since 2004’s $1.82 per gallon average.
Cheaper gas prices due to a pair of factors, said Patrick De Haan, GasBuddy’s head of petroleum analysis. For one, the ongoing COVID-19 pandemic has meant reduced demand for fuel, which has led to a lesser amount of “labor” needed to fill a car amidst historical unemployment rates.
Second, “With Hurricane Laura now behind us and many refineries returning to service, gas prices will begin to head lower just in time for the Labor Day weekend,” De Haan said Monday.
“This will be the lowest Labor Day weekend gas prices since 2004, closing out an incredible summer at the pump, with the most stable and lowest overall price from Memorial Day to Labor Day since 2004 as well,” De Haan said, adding that the good news for customers doesn’t end with Labor Day.
“Gas prices will likely continue falling as seasonal factors kick in, reducing demand, and in addition, we switch back to cheaper winter gasoline in just a couple of weeks,” he said.