NEW: Labor Day Gas Prices Plunge To Five-Year Low

Gas prices are projected to be at their cheapest point since 2020 over the Labor Day holiday weekend, according to the latest annual forecast released by industry monitor GasBuddy.

GasBuddy predicts that the gas prices on the last summer holiday weekend of 2025 will be $3.15 per gallon, a five-year low.

“Labor Day marks the unofficial end of summer, and when it comes to gas prices, it’s been the cheapest summer to hit the road since the pandemic, a trend that will likely continue with the potential for the national average to fall below $3 per gallon this fall,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

“We’ve seen a remarkably affordable summer to hit the road with incomes up and gas prices down, but there are some challenges that remain: hurricane season and uncertainty over trade, tariffs and Russia’s war on Ukraine. However, I remain optimistic that as cooler weather invades, gas prices too, will seasonally cool off.”

While gas prices have been great for consumers this summer, price hikes have occurred in a number of states due to recent natural disasters. “We believe this latest jump is probably more to do with the flooding that happened at the oil refinery in Indiana,” said AAA public affairs manager Kara Hitchens.

The BP Whiting refinery in Whiting, Indiana, the largest inland refinery in the continental United States, has experienced a temporary shutdown due to flooding in the area. Pump prices in Ohio, Wisconsin and Michigan on August 25 were as much as 27 cents higher than a week prior, according to data provided by the American Automobile Association.

Despite the spike in price, experts say consumers can expect a seasonal trend to cut costs over the next several weeks. “Winter blends are much cheaper to produce than summer blends,” Hitchens said. “Refineries will be switching over to their winter blends probably mid-September into October.”