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Labor Day gas prices 2024: will prices be lower? Where to get the cheapest gas
Labor Day is almost here and for those hitting the road, here is what you need to know to save some money at the pump.
As families prepare for the holiday weekend, gas prices are lower than they were a year ago. Budgets remain tight in many households, and we will provide guidance on finding the best prices near you.
The US Energy Information Adminstration released a short blog on Tuesday, highlighting the drop in gas prices compared to Labor Day 2023, reporting that prices captured on August 26 were thirteen percent lower than last year. Drivers in the Rocky Moutain region are feeling the most relief, with the cost of a gallon down $0.62 to an average of $3.36.
For more up-to-date data, we turn to AAA, which reports that on Friday, August 30, the national average for a gallon of regular gas stood at $3.350, down 0.47 from last year.
As prices and retailers vary by location, it is wise to use one of the following platforms to find the best prices near you. Gas Buddy is a free option that allows drivers to select the type of gasoline, their location, their payment method, and their preferred brand to identify which retailers best meet their needs. The site also tells users when the prices were last updated to prevent any surprises when they turn up at the pump and see a different figure on the board. For those planning a road trip, Gas Buddy can be used along the route to identify the best places to stop and save a few bucks.
What is keeping gas prices high?
Gas prices remain well above their pre-pandemic price points. Though many oil and gas companies have cited higher costs and greater demand for higher prices, the sector still managed to rake in $75 billion in profits in the year’s first quarter. Gas prices fell just over 5 percent throughout 2023, and since January, they have risen by 0.84 percent.
In June, OPEC, an organization of petroleum exporting countries that work together to stabilize the price of oil, announced that they would be decreasing their production. This pushes global prices up as supply is expected to decrease if other producers do not fill the gap. Non-OPEC producers in the US are not incentivized to increase production to offset OPEC’s reduction because they also benefit from higher demand. In early August, the EIA reported that petroleum prices are expected to increase as global inventories fall over the next three quarters.
This summer, restricted refining capacity across the Midwest pushed prices up. Refiners turning off in Ohio and around Chicago let prices fall within 1 percent of the national average, whereas the region has recorded prices far below this figure since mid-2022.