Memorial Day weekend gas prices could be cheapest since 2021
Gas prices are expected to be at their lowest level this Memorial Day weekend since 2021, bringing good news to the nearly 40 million Americans expected to hit the road. According to GasBuddy, motorists can anticipate spending an average of $3.08 per gallon of regular gas during the federal holiday, which is 50 cents less than last Memorial Day.
Looking ahead, GasBuddy predicts that gas prices will continue to decrease slightly over the summer, with a national average of $3.02 per gallon expected through Labor Day. In fact, prices could potentially drop below $3 a gallon by the end of the summer, making it the lowest average gas price since 2003 when adjusted for inflation, excluding the anomaly of 2020 due to the COVID-19 pandemic.
This drop in gas prices during a time of year when prices typically rise is unusual. Factors such as increased demand during the spring and summer months usually lead to higher fuel costs. Additionally, federal regulations requiring refineries to shift to summer-grade blends can also contribute to higher prices, as stated by the Energy Information Administration.
In terms of gas prices by state, the lowest average prices can be found in Mississippi, Louisiana, Alabama, South Carolina, Tennessee, Oklahoma, Arkansas, Texas, Kentucky, and North Carolina. On the other hand, California, Hawaii, Washington, Oregon, Nevada, Alaska, Illinois, Arizona, Pennsylvania, and Idaho have the highest average gas prices.
Several factors are driving down the price of gas across the United States. Uncertainty surrounding the impact of the Trump administration’s economic policies has dampened demand, while increased oil production by OPEC+ countries has lowered the cost of crude. Bloomberg News reports that OPEC members could further increase supplies in July, contributing to the decrease in oil prices.
Despite lower gas prices, other vacation-related expenses are on the rise. Entertainment costs are up by 3.4% from a year ago, and dining out has seen a 4% increase, according to NerdWallet. While motorists may enjoy some savings at the pump this Memorial Day weekend, these savings could end up being spent on other aspects of their vacation.
Overall, the current trend in gas prices is a welcome relief for consumers, especially during a holiday weekend that typically sees higher prices at the pump. As the summer progresses, motorists can look forward to potentially even lower gas prices, providing some financial relief for those planning road trips and vacations.
