Gasoline prices at their highest in 7 years for Labor Day trips, but drop relief expected at the pump

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Some relief is on the way at the pump, but GasBuddy says those traveling for Labor Day 2021 will see higher gas prices.

Prices are expected to average $ 3.11 / gallon, 90 cents higher than Labor Day 2020 and the highest since 2014, according to the analytics company.

GasBuddy cited companies reopening offices and increasing travel for higher prices, but warned that the COVID-19 delta variant made forecasting difficult.

“As Covid continues to play a leading role in gasoline demand and companies plan to return to power, prices may be less predictable than normal. However, seasonality will persist, which means a drop in demand for gasoline as we move through the fall and winter, and cost savings from reverting to cheaper winter gasoline in mid. -September, ”said Patrick De Hann, head of petroleum analysis at GasBuddy.

The return to winter gasoline blending and lower demand around the holiday season should lead to further price cuts towards the end of the year, De Hann added.

About Jonathan J. Kramer

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