As Labor Day Weekend Starts, Gas Prices Fall to Lowest Level in 11 Years

By Paul Riegler on 5 September 2015
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As Americans take to the roads this holiday weekend, low gasoline prices are fueling more driving than ever.  Over 8,000 gas stations in 24 states – roughly 5% of the total – have prices below $2 per gallon, a dramatic shift since Labor Day in 2014, where gasoline was simply not available at that price anywhere in the country.

On Friday, as the Labor Day weekend started, the national average for a gallon of regular gasoline was $2.42, a decrease of nine cents from last week and $1.01 lower than last year’s price, according to the AAA’s Daily Fuel Gauge Report.  The the national average for a gallon of diesel fuel was $2.558, a significant drop from $3.800 one year ago.

The current average price of a gallon of gasoline in New York is $2.602, according to AAA figures, down more than a dollar from a year ago when it was $3.698.  Diesel has dropped even further: the average price of a gallon of diesel fuel was $2.943, a drop of $1.19 from the same period last year.

In the state of Georgia, the average price of a gallon of gas was $2.254, down from $3.357 one year ago.  Diesel is now $2.55 per gallon, compared to $3.769 in the same period in 2014.

Over 35,5 million Americans will travel 50 miles or more during the holiday weekend, the largest number since 2008 and a 1% year-over-year increase, according to figures released by several regional AAA clubs, which said that 86% of these travelers will drive.

Part of the decline in prices has been attributed to the historic nuclear deal with Iran, the country with the world’s fourth-largest oil reserves, which is now able to sell its oil to the western world.  The deal has the potential of adding one million barrels of crude oil to the market per day once the country ramps up production but even a modest increase in that country’s output has had the ability to dramatically impact oil prices.

(Photo: Accura Media Group)

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