Why gas prices are so much cheaper than last summer

Labor Day weekend travelers can expect lower gas prices this year. GasBuddy predicts that the national average price of gas on Labor Day will be $3.27 per gallon, the cheapest since 2021. This reflects a decline of 50 cents, or 13%, compared to last year’s Labor Day prices, and 52 cents from Labor Day 2022. Americans are projected to spend $750 million less on gas during the holiday weekend. Gas prices have dropped the most in states such as Oregon, Washington, Arizona, Alaska, and Utah. The decrease in prices is driven by factors including weaker oil prices, lower demand for gasoline, and minimal refinery outages. US oil production has reached record highs, offsetting OPEC oil losses.