(UNITED STATES) Gas prices for Labor Day 2025 are at their lowest since 2020, with the national average at $3.15 per gallon. That’s 14 cents lower than Labor Day 2024 and makes this the most affordable long weekend for drivers in five years. The drop follows a summer of falling pump prices, helped by stronger refinery output, moderating demand, and lower crude oil costs across the United States 🇺🇸.
Compared with recent years, the trend is clear. The national average sat at $3.29 in 2024, $3.77 in 2023, and $3.79 in 2022. It was $3.16 in 2021 and $2.22 in 2020, the last time Labor Day gas prices were this low.
Pump prices also slipped through August: the national average hit $3.13 on August 21, 2025, and $3.14 on August 12, an 8.8% year-over-year decrease.
Wholesale, crude, and demand indicators
Wholesale and crude markets point in the same direction:
- Wholesale gasoline futures fell to $2.14 per gallon on August 28, 2025, down 3.69% over the past month and 4.69% from a year earlier.
- West Texas Intermediate (WTI) crude traded at $63.21 per barrel on August 21, reflecting softer oil costs feeding into retail prices.
- As the summer driving season wound down, gasoline demand eased from 9.0 million barrels per day to 8.84 million barrels per day during the week leading up to August 21.
These factors — weaker crude, falling wholesale prices, and easing demand — helped retail pump prices decline through late summer.
Latest price levels and regional gaps
Drivers in the South and parts of the Midwest are seeing the cheapest fill-ups:
- Lowest state averages ahead of Labor Day: Mississippi ($2.68), Oklahoma ($2.70), Louisiana ($2.72), Texas ($2.74).
- Highest state averages (West Coast): California ($4.49), Hawaii ($4.46), Washington ($4.39).
These regional gaps reflect differences in:
- State fuel taxes
- Regional supply and demand
- Local refinery conditions
There have been exceptions to the broad decline. A BP refinery outage tied to storm flooding caused temporary price spikes in parts of the Midwest — including Michigan, Illinois, Wisconsin, Ohio, and Indiana. Those localized jumps have not changed the national picture, which remains favorable for holiday travelers.
Analysts say supply and stock levels improved through late summer. Refineries ran harder, gasoline inventories rebuilt from seasonal lows, and demand softened as families returned to school schedules. These supply-and-demand shifts, paired with cooler crude markets, set up a cheaper end to the summer driving season.
Important: localized refinery outages or major storms can still cause short-term spikes even when the national trend is down.
Political framing and market forces
The White House under President Trump credits policy moves for the relief. Officials point to efforts to “unleash American energy,” boost domestic production, and keep energy affordable as contributing to lower prices.
- White House spokesperson Taylor Rogers said Americans have enjoyed the cheapest summer gas prices in five years, noting noticeable savings from Memorial Day to Labor Day.
Market watchers agree the summer was kinder to drivers but stress multiple contributing factors beyond policy:
- Patrick De Haan, Head of Petroleum Analysis at GasBuddy, highlights lower pump prices and higher incomes as making summer travel more affordable.
- He warns of ongoing risks: hurricane season, global trade tensions, and the war in Ukraine.
De Haan expects further relief as refineries switch to winter gasoline blends in mid-September, which usually costs less to produce.
Forecasts and what could change
Both GasBuddy and AAA analysts expect prices to keep easing after the holiday as demand drops. If current trends hold, forecasts suggest the national average could fall below $3 per gallon in fall 2025.
Key dependencies for that outlook:
- Stable refinery operations
- Calm weather (no major hurricanes)
- No extended refinery outages
Any major hurricane or prolonged refinery outage could slow or reverse the decline.
What this means for families and travelers
For many families, the timing matters. Labor Day often marks one last road trip before school and work routines fully resume, and cheaper fuel can make the difference between a long drive to see relatives and staying home.
- This year, many drivers will head out with more room in their budgets than in 2022 or 2023.
- Travelers should still plan for regional differences: the West Coast’s higher prices add up on long drives, while the South and parts of the Midwest are more forgiving.
- Drivers in the Midwest should watch for lingering effects from the BP outage; local supply issues can cause short-term bumps at the pump.
Price trends through August help explain why the market looks softer: retail prices slipped gradually during the month, echoing futures and WTI crude moves. With inventories rebuilding and refineries running strong, the system entered Labor Day in better shape than during the price peaks of 2022 and 2023.
From a budgeting standpoint, this is the most affordable summer for road trips since 2020. Falling prices across the season reduced costs for daily commuters and long-distance travelers alike, meaning fewer hard choices between fuel, food, and lodging on holiday weekends.
If the expected switch to cheaper winter gasoline blends goes smoothly, the savings could continue into the fall.
Sources and where to follow updates
Consumers wanting official data on supply, demand, and prices can review the U.S. government’s weekly updates from the U.S. Energy Information Administration. The EIA tracks gasoline and diesel prices, inventories, refinery runs, and other indicators that shape what drivers pay.
For real-time local prices and forecasts:
- GasBuddy — common tool for local price tracking
- AAA Gas Prices — state and metro breakdowns
For official policy statements, follow the White House Press Office. Media queries and story tips can be sent to Elaine Mallon at [email protected] or @MallonElaine on X (formerly Twitter).
According to analysis by VisaVerge.com, travelers often track fuel costs closely during long weekends since pump prices can make or break a family road budget, especially around Labor Day.
Bottom line
With the national average at $3.15 per gallon, families face the cheapest Labor Day fuel costs since 2020. Regional differences remain, and sudden storms or refinery problems can still push prices higher in some areas. But the broader trend is down: if hurricane season stays quiet and refineries avoid major setbacks, the national average could keep sliding into the fall — possibly dipping under $3 per gallon for the first time in years.
This Article in a Nutshell
Labor Day 2025 gas prices averaged $3.15 per gallon — the lowest since 2020 and 14 cents below 2024 — driven by stronger refinery output, lower crude costs and easing demand. Retail averages fell through August alongside wholesale futures, which dropped to $2.14 per gallon on Aug 28, and WTI crude traded near $63.21 per barrel. Demand dipped to 8.84 million barrels per day as the summer driving season wound down. Regionally, Southern and some Midwestern states reported the cheapest fuel, while West Coast states like California and Hawaii remained highest. Local refinery outages caused temporary regional spikes but did not change the national downward trend. Analysts and forecasters (GasBuddy, AAA) expect further price relief into fall if refineries remain stable and no major storms disrupt supply; a drop below $3 per gallon is possible. Consumers should monitor local conditions and official EIA updates for changes.
