Gas prices began moving in a downward trend in July and GasBuddy’s chief oil analyst, Tom Kloza, expects that these prices should remain pretty consistent through mid-September. Prices may drop even lower in later September, he said.
Regular gas prices in the United States as of August 4 were at about $3.53 per gallon for regular fuel and $3.85 per gallon for diesel, according to the U.S. Energy Information Administration.
The West Coast had the highest average price per gallon as of early August at $3.89. The Rocky Mountain area averaged about $3.64 per gallon.
For the East Coast, the average price was about $3.50 per gallon in early August. The Midwest paid about $3.42 per gallon and the Gulf Coast spent about $3.31 per gallon.
The study reports that the lack of major hurricanes this season factored into the lower gas prices, as hurricanes and major storms typically drive fuel prices up.
Many Americans are expected to take advantage of the lower gas prices, according to a survey by AAA. They expect 34.7 million Americans to travel for Labor Day weekend, a 1.3% increase from last year.
Almost 30 million of these travelers plan to drive, while 2.65 million will travel by plane and 2.35 million will use an alternative form of transportation.
Businesses located in popular travel destinations may get an increase in customers this weekend, especially ones that focus on the hospitality industry, such as hotels and restaurants.
Retailers may also get a holiday-related boost, as Labor Day tends to offer consumers some major sales and discount opportunities. Large sales could attract large crowds, which increases the potential for profit.