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Labor Day gas prices expected to be lowest in years

Posted at 12:25 PM, Aug 22, 2019
and last updated 2019-08-23 07:56:10-04

This Labor Day is expected to see the lowest-priced gas for the holiday in past two to three years.

The average price for gas in the U.S. today is $2.60 per gallon, which is 24 cents less than Labor Day 2018, and 4 cents less than Labor Day 2017, according to AAA.

The decrease in price is due to strong U.S. oil production rates.

"Gas prices should remain low heading into the holiday, unless something unexpected threatens fuel supplies, like geopolitical tensions or a hurricane in the Gulf of Mexico," said Nick Jarmusz, Midwest director of pubic affairs for AAA.

Labor Day marks the end of summer travel, and with that, the switch to winter-blend gasoline, which is cheaper to produce than the summer-blend gas.

The transition to lower demand and lower fuel production costs typically means we'll see lower gas prices through the end of the year. Woo hoo!