Labor Day Gas Prices Predicted To Be The Lowest In Two Years

August 26, 2019

Labor Day is quickly approaching and gas prices for the holiday weekend are lining up to be the lowest in 2-3 years. However, there are still a number of factors could push prices higher before the holiday.

Florida drivers are currently paying an average price of $2.37 at the pump. The state average is 43 cents per gallon less than it was on Labor Day 2018 ($2.80), and 27 cents less than Labor Day 2017 ($2.64).

Escambia County drivers were paying an average of $2.38 a gallon, while several stations in Cantonment were at $2.21 per gallon Sunday night.

“Labor Day travelers continue to benefit from lower oil prices this year as they fill-up for their Labor Day road trip,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Strong US oil production rates are holding oil prices about 15% below last year’s levels, reducing the cost of producing gasoline. Gas prices should remain low heading into the holiday, unless something threatens fuel supplies like geopolitical tension or a hurricane in the Gulf of Mexico.”

Labor Day marks the end of the busy summer travel season, and the last big surge in gasoline demand before the fall. The expectation of strong demand can promote a slight and temporary bump at the pump before the holiday. However, after Labor Day, refineries begin their seasonal switch to winter-blend gasoline. Summer-blend gasoline is more expensive to produce than winter-blend, because the EPA requires more additives in the warmer months of the year. The combination of both lower demand and fuel production costs typically puts downward pressure on pump prices through the end of the year.

Florida gas prices have declined 37 of the past 39 consecutive days, for a total discount of 33 cents per gallon.

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Written by William Reynolds · Filed Under News