Americans that were traveling during the Labor Day weekend enjoyed the lowest gas prices in years. As the end of the summer driving season officially ends, nationwide gas prices are expected to stay at unprecedented low levels throughout the rest of the year.
According to a survey conducted by the American Automobile Association (AAA) on hundreds of gasoline stations nationwide, average prices of gas remained at below $2 per gallon in several states. As a whole, average gas prices remained at around $2.22 per gallon for regular gas. This is 14 percent lower than the average price of $2.57 per gallon motorists were paying just a year ago.
Boston-based real-time gas price data provider GasBuddy estimated that average national gas prices could drop to around $2.19 per gallon this week. The last time gas prices were this low during Labor day was in 2004, when the national average hit $1.82 per gallon, and in 2016, when national average prices hit $2.20 per gallon.
In states like Texas, Alabama, Arkansas, Oklahoma, Lousiana and Missouri, gas prices remained below $2 per gallon. According to the Oil Price Information Service (OPIS), which compiled the gas price data for the AAA, prices haven't been this cheap during the Labor Day weekend in nearly 16 years.
While several states have raised gas taxes to compensate, gas prices in the 32 states outside of the West and East coast have remained low. OPIS global head of energy analysis Tom Kloza pointed out that gas prices are likely to remain low through the end of 2020. He added that with the travel season now ending, coupled with the lack of recreational venues and unemployment, gas consumption is expected to drop even lower in the next four months.
The move made by global oil producers to reduce production to lower supply has done little to prevent gas prices from dropping worldwide. The prolonged pandemic has continued to drive down demand for gas globally. With unemployment rates at an all-time high and with more employees now working from home, the need to gas up cars and public transportation has remained at unprecedented low levels.
While the low gas prices may spur some families to gas up and travel to other states and cities, the Centers for Disease Control and Prevention has advised Americans to stay at home as much as possible as the threat of the pandemic still exists.
