Labor Day Gas Prices Hit Lowest Since 2020 at $3.15 a Gallon

Gas prices in the United States are set to reach their lowest point since 2020 this Labor Day, with an average cost of $3.15 per gallon expected on September 1. This marks a 14-cent decrease from the average price seen in 2024.

The last time gas prices were this low during a holiday known for heavy travel was in 2021, when the average was recorded at $3.16 per gallon. In contrast, the national average was significantly lower in 2020, at just $2.22 per gallon.

This decline in fuel costs is likely to have a positive impact on American families planning road trips and other travel activities over the holiday weekend. The lower prices may encourage more people to hit the road, boosting local economies that rely on holiday tourism.

As fuel prices fluctuate, consumers are reminded of the broader economic conditions influencing these changes, including global oil supply and demand dynamics. For further context on international economic developments, see our recent developments regarding geopolitical tensions.