Here’s How Gas Prices Look Ahead of This Labor Day Weekend

• The national average price for a gallon of gasoline is $3.35 as of August 27 and has continued to slowly drop over the past few weeks, trending well below 2023 and 2022 levels for this time of year.

• AAA expects Labor Day weekend travel to represent a 9% increase over 2023, according to the latest booking data, but overall demand for fuel is relatively soft due to pandemic-era changes in weekday travel.

• No major disruptions to gasoline production have taken place this summer due to excessive heat or effects from Hurricane Beryl, though a significant part of the Atlantic hurricane season is still head.

This Labor Day travel holiday promises to be a particularly active one, with this year already having seen one of the busiest July 4th travel seasons in ages.

AAA notes that planned domestic travel over the upcoming Labor Day weekend is up 9% compared to 2023, according to its booking data, representing a significant spike.

And the traditional last holiday of the summer could be different in 2024 for one other big reason: Gas prices are trending far below 2022 and 2023 levels, with the current average of $3.35 a gallon resting about half a dollar below that of the two previous years.

And prices are still falling in many parts of the country just days ahead of Labor Day weekend, with damage from Hurricane Beryl having produced only minor disruptions to gasoline production along the Gulf Coast.

As usual, statewide gas price averages are lowest along the Gulf Coast, with Mississippi currently seeing a $2.89 a gallon average, along with Oklahoma at the same mark.

What do we have to thank for the drop in the national average price, compared to the previous two years?

AAA says gasoline demand is still down despite the popularity of big summer road trips, as daily driving habits have changed in the post-pandemic era.

So despite summer travel holidays having seen some high water marks, commutes and daily driving trends are now different enough to be noticeable year round.

But gas prices aren't about to party like it's 2009 all over the country.

At the other end of the spectrum we have California, traditionally one of the two leaders in this regard, with $4.61 a gallon average still avoiding particularly painful price territory, though Hawaii is still ahead at $4.66. Washington state's $4.17 a gallon average puts it in a distant third place.

One other component of retail gasoline prices has stayed relatively stable this summer, despite plenty of turmoil in one particular part of the world.

"The clouds of war overseas are less dark at the moment, and the Atlantic is quiet now too, which is taking pressure off of oil prices,” Andrew Gross, AAA spokesperson, said last week. "More retail locations east of the Rockies are selling gas below $3 a gallon."

The big variable, as always, is how the latter half of the hurricane season will affect production.

"But we still have a long way to go with hurricane season, so it’s too soon to declare that pump prices have started their usual Autumn swoon," Gross added.

If there is one other trend to keep an eye on, it's lines of cars at EV chargers, particularly as Tesla opens up its Supercharger network and NACS standard to models from other electric automakers.

The next two summers should be good indicators of where national charging networks are headed when it comes to resilience to big travel holidays, at least on the two coasts.

Have long summer road trips been a factor in your decision whether to purchase an EV over the past few years? Let us know in the comments below.