If you're planning to head out on the road for Labor Day weekend, be prepared to pay the highest Labor Day holiday average gas prices we've seen in 7 years. According to Gas Buddy, we can expect to see the highest prices at the pump since 2014, with a national average of $3.11 a gallon. It's a stark contrast to last year when prices were at their lowest Labor Day prices since 2004, due to the pandemic lockdowns in many areas of the country. So what does that mean for your pocketbook? You'll be paying $0.90 cents more a gallon this year over last, on average.
Summer of High Gas Prices, Fall Decline Coming
It's been a summer of high gas prices, according to Gas Buddy, with prices increasing since earlier this summer. But the good news is that they are beginning to drop as the summer travel season winds down. The new Delta variant is also once again restricting some people's activities or impacting commutes which impacts demand as well.
“As demand for gasoline has begun to cool with schools reopening and vacation season wrapping up, we’ve seen a small amount of relief at the pump just in time for Labor Day,” said Patrick De Haan, head of petroleum analysis for GasBuddy. “While Covid continues to have a leading role in gasoline demand and companies plan their return to office, prices may be less predictable than normal. However, seasonality will persist, and that means less gasoline demand as we progress through fall and into winter, and cost savings from the switch back to cheaper winter gasoline in mid-September. We should see more relief at the pump coming the deeper into fall we go.”
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