Labor Day weekend gas prices are predicted to be the lowest since 2020, according to an analysis on Tuesday by GasBuddy. The average price of gasoline is expected to dip to $3.15 per gallon.
Analysts said these will be the lowest gas prices since the COVID-19 pandemic in 2020, when the price of gas fell to $2.22 per gallon.
‘Remarkably affordable summer’
“We’ve seen a remarkably affordable summer to hit the road with incomes up and gas prices down, but there are some challenges that remain: hurricane season and uncertainty over trade, tariffs and Russia’s war on Ukraine,” said Patrick De Haan, an analyst with GasBuddy.
“However, I remain optimistic that as cooler weather invades, gas prices too will seasonally cool off,” he said.
Last year, gas prices averaged $3.29 per gallon, and in 2023, they reached $3.77.
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Factors that will drive down prices
AAA is also predicting lower gas prices despite a rise in prices last month due to family vacations before summer officially ends, according to the agency’s corporate communications manager, Doug Shupe.
Shupe told San Antonio station KSAT that prices should drop as gasoline demand falls and the nation transitions to its winter blend of gasoline, which is cheaper to produce.
Industry analysts have also said that oil producers’ increased output has helped keep prices steady this year. OPEC+ has increased production and announced plans to further ramp up production again in September. U.S. crude oil production has also reached record highs in 2025, at more than 13 million barrels of oil per day. Smaller producers such as Brazil and Guyana have also increased their production, as reported by USA Today.
Customers should shop around for best prices
As for drivers, Shupe recommends shopping around gas stations to find the cheapest price. He notes that high-demand gas stations, such as those located near interstates or highways, typically have higher prices.
Shupe also said that fuel retailers are legally allowed to set their own prices and can use them to entice customers.
“Bottom line is, shop around for the cheapest gas prices,” he added. “Don’t just go to that gas station because it’s easy to get to.”
