Good news for the nearly 40 million Americans expected to hit the road this Memorial Day weekend: Gas prices are likely to at their lowest level since 2021, industry estimates show.
Motorists can expect to spend an average of $3.08 for a gallon of regular gas over the federal holiday, according to GasBuddy, a fuel savings platform. That’s 50 cents a gallon less than for Memorial Day in 2024.
GasBuddy also expects prices at the pump to ease slightly over the summer to a national average of $3.02 per gallon through Labor Day. Prices could even dip below $3 a gallon toward the end of the summer, according to the firm’s most recent forecast.
Excluding 2020, when the COVID-19 pandemic first struck, the national average gas price is forecast to be the lowest it’s been since 2003, when adjusted for inflation.
Cheaper gas this time of year is unusual given that fuel prices typically rise during the spring and summer as demand increases. Federal regulations requiring that refineries shift to summer-grade blends that are less likely to evaporate also tend to boost fuel costs, according to the Energy Information Administration.
Between 2004 and 2023, the average price of gas in August was roughly 40 cents per gallon higher than in January, the agency has found.
Cheapest and priciest gas by state
Nationwide, these 10 states have the lowest average gas prices, according to GasBuddy:
- Mississippi — $2.64 per gallon
- Louisiana — $2.69
- Alabama — $2.72
- South Carolina — $2.77
- Tennessee — $2.77
- Oklahoma — $2.77
- Arkansa — $2.77
- Texas — $2.77
- Kentucky — $2.85
- North Carolina — $2.87
The 10 states with the priciest gas:
- California — $4.83
- Hawaii — $4.46
- Washington — $4.37
- Oregon — $3.94
- Nevada — $3.87
- Alaska — $3.59
- Illinois — $3.42
- Arizona — $3.37
- Pennsylvania — $3.31
- Idaho — 3.27
What’s driving down the price of gas?
One factor contributing to lower gas prices around the U.S. is uncertainty over the impact of the Trump administration’s economic policies, which is damping demand, according to GasBuddy. Increased oil production by the OPEC+ countries has also lowered the cost of crude, while members of the group could further boost supplies in July, Bloomberg News reports.
Since mid-January, global oil prices have fallen by $20 a barrel, reflecting both supply increases and weak demand expectations, according to an analysis from Goldman Sachs Global Investment Research.
By contrast, lower oil prices likely won’t offset the inflationary effects of U.S. tariffs, according to the researchers, who noted that consumers are bracing for higher prices because of the levies.
Although motorists will mostly find modest gas prices this Memorial Day weekend, other vacation-related expenses are up. Any savings on gas could end up being spent on entertainment, with costs up 3.4% from a year ago, according to NerdWallet. The cost of dining out is also up 4%, according to the personal finance site.
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