Will gas prices go up in Labor day week-end?

Labor Day weekend is typically one of the busiest travel weekends in the United States. Many people take advantage of the long weekend to go on vacations, visit family and friends, or simply enjoy a short getaway.

Inevitably, this increased demand for fuel puts pressure on prices. This isn’t helped by the holiday falling at the end of summer, just before school and college starts; it’s the last chance for many to catch the last of the summer warmth.

Previous years’ prices have been affected more by this demand, but analysts believe there will be no significant change in the price of fuel this time around.

“With visits to the pump rather flat and the price of oil hovering around the $80 per barrel mark, the national average for a gallon of gas will likely stay where it is through this holiday weekend,” said AAA spokesman Andrew Gross.

He added, “Hurricane Idalia may cause regional price jumps due to station damage, flooded roads, and power outages, but as in past years, these things are usually fixed in a few weeks.”

So have no fret, fuel will have no sudden jump in price. However, prices have slowly been increasing this year, mostly a result of geopolitical plays by other countries.

A summer of increasing gas prices

The price of crude oil has gone up from approximately $70 per barrel in July, to its recent tag of $80 per barrel. Major oil producing nations such as Saudi Arabia and Russia, both members of the oil price-fixing cartel OPEC, began to cut back on production in August.

Although the current national average of $3.81 is very similar to this time last year, it is 22 cents more compared to last month. Prices remain significantly higher than they were in 2019 and 2020.