We are approaching Labor Day Weekend 2016 —the last three day weekend of summer. While U.S. motorists are still enjoying cheap gas prices, some of the cheapest since 2004, fuel analysts are reporting a slight increase in gasoline prices. One contributing factor to this recent price uptick is the increase in gasoline demand. United Press International (UPI) is reporting that more than half of all Americans are expected to take a road trip during the upcoming Labor Day Holiday Weekend.
What about you? Are you IN or OUT for a road trip this holiday weekend?
AAA reports that while gas prices have been rising for two weeks, they’re still 27 cents cheaper than they were this time last year—and are pacing to be the lowest since Labor Day weekend 2004. However, let’s take a closer look with data from GasBuddy.com:
$2.201 One Week Ago
$2.132 One Month Ago
$2.475 One Year Ago
And there you have it. Gasoline prices are still a bargain in the U.S. of A. In some local markets, gas prices are below $2 per gallon. As a reminder, in my last post on this topic, Sizing Up Gasoline Prices for Summer 2016, the primary reason given for the recent uptick in gasoline prices over the past two to three weeks are tied to a rumor that members of OPEC will hold informal talks to discuss production cuts during the September 2016 meeting of the International Energy Forum in Algeria.
Following Labor Day Weekend, or shortly thereafter, it is anticipated that prices at the pump will drop off as demand pressures ease and refineries start making a winter blend of gasoline that is less expensive to produce because of fewer necessary environmental requirements. In other words, expect lower gas prices at the pump for the fall and winter. Ka-ching!
Happy motoring and safe driving this Labor Day Holiday Weekend!!!