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lite.cnn.com - on gopher - inofficial
ARTICLE VIEW:
Gas hasn’t been this cheap on Labor Day since 2020
By Matt Egan, CNN
Updated:
5:00 AM EDT, Fri August 29, 2025
Source: CNN
Americans soaking up the end of summer this holiday weekend will catch
a break at the gas pump.
Labor Day gas prices are expected to average $3.15 per gallon this
year— the cheapest since 2020 during the Covid-19 pandemic, according
to GasBuddy. That’s down modestly from $3.29 last Labor Day.
Drivers in some parts of the country will find sub-$3 gas. As of
Thursday, the average price is below $3 per gallon in 15 states,
including Georgia, Texas, North Carolina and Iowa, the automotive and
trip-planning group.
offer a bright spot to consumers still struggling with a higher cost of
living at the grocery store, in their utility bills and elsewhere.
Although gas prices have edged higher in recent days, they remain well
below last summer — and it’s largely due to the fact that oil
prices remain low.
“Americans are spending less and less of their paychecks filling up
their tanks,” Patrick De Haan, vice president of petroleum analysis
at GasBuddy, told CNN in a phone interview.
Gas prices crashed in 2020 as the health crisis caused many Americans
to stay off the roads. The national average that Labor Day plunged to
just $2.22 a gallon.
Then gas prices reached a Labor Day record high of $3.79 in 2022, the
same year gas surged to $5 a gallon for the first time after Russia’s
invasion of Ukraine spiked oil prices.
“Lowering the cost of energy is very important. It translates to an
immediate increase in household cashflow and helps middle and
lower-income Americans who are often living paycheck to paycheck,”
Joe LaVorgna, counselor to the US treasury secretary, told CNN in a
phone interview.
US oil fell below $64 a barrel on Thursday, down from $77.38 a barrel
on President Joe Biden’s final full day in office.
The White House took a victory lap for the lower fuel costs, crediting
Trump with “fully unleashing American energy dominance” in a
statement on Thursday. LaVorgna said oil prices are “largely a result
of the president’s policies” and his efforts to get US “allies
and partners overseas” to pump more oil.
Although it’s true that US oil production remains near all-time
highs, output is little changed since Trump took office, promising to
slash red tape and end President Joe Biden’s alleged war on energy.
In fact, US oil output stood at 13.4 million barrels per day during the
week ending on August 22, down slightly from 13.5 million during
President Joe Biden’s last full week in office, according to .
Still, LaVorgna argued the oil industry is feeling better about
investing in future production because of Trump’s deregulatory
stance.
“Oil companies are more confident in the outlook – and that they
won’t be regulated out of existence,” he said.
Analysts, on the other hand, have linked low gas prices to the
willingness of Saudi Arabia-led OPEC to ramp up production.
After years of holding back supply, OPEC has — something during a
major speech at Davos in January, just days after taking office. OPEC
has been its output to regain market share.
“In terms of keeping prices contained, OPEC’s aggressive return of
barrels has arguably been the most unexpected factor,” said Rebecca
Babin, senior energy trader at wealth management company CIBC Private
Wealth.
Babin said she’s “confident” US oil prices will remain below $70
over the next few months, though she said the “wildcard” would be a
sanctions crackdown on Russia or Iran that could lift crude prices.
GasBuddy’s De Haan is also hopeful that tame gas prices are here to
stay. The national average of $3.21 per gallon is up 7 cents from a
week ago, according to AAA — but De Haan blamed that on severe
weather in the Midwest that knocked offline a critical Indiana
refinery.
“The timing is up in the air and depends on hurricane season, but the
stars look aligned for sub-$3 gas this fall,” De Haan said. “It’s
a question of when, not if.”
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