Labor Day Weekend Gas Prices Lowest in 11 Years
The average gas price is the lowest since 2004, thanks to oil supply and prices.
— -- Labor Day gas prices are the lowest in over a decade, giving some relief to drivers who will be hitting the road this weekend for the holiday.
Average gas prices are nearly $1 lower than they were a year ago, and motorists in the south will spend the least this weekend, according to a forecast by GasBuddy. The average gas price is $2.51 cents for a gallon of regular, down nearly 13 cents from a week ago and 95 cents from a year ago, according to the U.S. Energy Department's weekly report on Monday.
Still, the price of gas varies widely across the country. Drivers in California are still paying an average of $3.34 a gallon for regular, according to the Energy Department's weekly report, while Texans are paying an average of $2.21.
Low oil prices and relatively good weather have contributed to the lowest gas prices since 2004. Drivers may save $1.4 billion at the pump this long Labor Day weekend, GasBuddy estimates. Oil producers have been creating larger supply around the world, including in the U.S. The average barrel of crude oil is around $47, about half the price from the same period a year ago.
There are as many as 19 states where at least one retail outlet is already selling gas below $2, according to GasBuddy. South Carolina is the only state to have an average gas price under that level, at $1.995 a gallon. This weekend, nearly 70 percent of gas stations may be priced at under $2.50 a gallon compared to none last year, according to Gas Buddy's predictions.