Travelers heading out for Labor Day weekend will be pleased to learn that gas prices are going down.

As of Thursday, the average cost for regular gasoline in the U.S. is $3.36 per gallon. This marks a drop of about 14 cents since last month and 46 cents compared to one year ago, according to AAA data. Experts predict prices will continue to decline for the rest of the year unless there are unforeseen issues.

“If you’re planning a trip, this is a great weekend to travel since prices are moving downward,” AAA spokesperson Andrew Gross stated.

What’s Behind the Drop in Gas Prices?

Throughout most of the summer, the national average for gasoline struggled to stay below $3.50 per gallon, according to Gross. Data indicated prices fluctuating between $3.44 and $3.54 in June and July.

“Suddenly, we’ve seen a shift,” Gross commented in an interview with YSL News last week.

Lower oil prices have contributed to this change, as noted by oil analyst Matt Smith from Kpler, a commodity data company.

West Texas Intermediate, a benchmark for U.S. oil, has decreased roughly 8% since early July. Talks of a cease-fire in Gaza and reduced oil demand in China due to an economic downturn have lowered oil prices in August. However, fears of production cuts in Libya have recently pushed prices higher, according to Smith.

Seasonal trends also play a role, with gasoline prices typically decreasing towards the year’s end as demand declines.

“Most regions of the country can expect significantly lower prices,” stated Tom Kloza, global head of energy analysis at the Oil Price Information Service, a pricing reporting platform. “After Labor Day, people will likely discuss, ‘Wow, this is the most affordable gas we’ve seen since 2021.’”

Will Gas Prices Continue to Decrease?

While gas prices are currently favorable, certain events could change this trend.

This year’s hurricane season has been relatively calm, but it doesn’t officially end until Nov. 30. Experts warn that geopolitical issues could escalate and lead to higher oil prices.

However, unless a significant hurricane impacts U.S. oil refineries or a major global crisis occurs, Gross predicts that gas prices should “continue to decline steadily” through the year. This is especially likely as refineries transition from summer gasoline to more affordable winter blends in September.

“Looking ahead, consumers can expect prices to gradually decrease from here,” Smith commented. Although he is not certain that the national average will drop below $3 per gallon this year, the current trends are “a positive sign for our wallets.”

Which States are Paying the Most for Gas?

Some states are already experiencing average gas prices below $3 per gallon. Kloza mentioned that the futures market indicates “most areas” will have average prices under $3 by the end of the year.

According to AAA data, states with the lowest average gas prices as of Thursday include:

• Mississippi: $2.89
• Oklahoma: $2.94
• Texas: $2.95
• Tennessee: $2.96
• Louisiana: $2.96

Conversely, some states are still facing prices above $3.50 per gallon on average:

• Hawaii: $4.65
• California: $4.63
• Washington: $4.17
• Nevada: $3.97
• Oregon: $3.79