The Week

The lowest gas prices of the summer will be a treat for local drivers this Labor Day weekend. Gas price averages in the region continue to drop and are on track to be at least 25 cents less than last year. Lower crude prices and an increase in gasoline supply along the East Coast are helping drivers save money as they take their last summer road trip.

Today’s national gas price average is $2.58, down two cents in the last week, down 14 cents in the last month and down 23 cents from this time last year.

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $55.10 per barrel, 93 cents higher than last Friday’s close. Throughout the week, crude prices drifted between $53 and $57, rising on Thursday as China de-escalated trade tensions with the U.S., confirming preparation talks for renewed trade negotiations. A large decrease in U.S. crude inventories, coupled with continued tensions between the U.S. and Iran supported prices during the week but were kept in check by speculations over a potential recession. 

The Weekend

“Drivers taking one last summer road trip for the Labor Day holiday are seeing gas prices lower than they were for both the Memorial Day and Independence Day holidays,” says John B. Townsend II, manager of Public and Government Affairs for AAA Mid-Atlantic.  “Many local drivers should see prices at the pump at least 25 cents lower than they were just one year ago.”

The Week Ahead

As Hurricane Dorian takes aim at the Florida in the coming days, it is unlikely to impact critical Gulf Coast refining infrastructure like Hurricane Harvey did in 2017, which means local gas prices should remain unaffected.  However, leading up to the hurricane’s landfall, gas supplies are likely to tighten in Florida. Depending on the weather prior to the storm’s arrival, fuel deliveries could be reduced, limiting fuel supply at terminals and at Florida fueling stations. Gas prices could see spikes locally and regionally as motorists flock to stations to top-off vehicles, potentially causing panic buying. The severity of the storm will determine access to fuel supply and impact on gas prices in Florida. As in any national or local state of emergency, AAA expects gas prices to remain stable -- up and down the gasoline supply chain -- including prices set by refiners, distributors and dealers.

AAA has a variety of resources to help motorists save on fuel:

• Shell Fuel Rewards Program for AAA Members: (https://www.AAA.com/Shell) gives AAA members nationwide a discount on gasoline at Shell stations when they join the Fuel Rewards® program.

• Fuel Price Finder (https://www.AAA.com/fuelfinder) locates the lowest fuel price in your area. 

• AAA Gas Cost Calculator (https://gasprices.aaa.com/aaa-gas-cost-calculator/) helps budget travel expenses. 

• TripTik Mobile (https://www.aaa.com/mobile) plots fuel prices along your travel route. 

• AAA's Member Rewards Visa® Credit Card (https://www.AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases. 

AAA is the most comprehensive resource for gas prices.  Unlike the Lundberg Survey of 7,000 gas stations, AAA reports reflect actual prices from credit card transactions at more than 100,000 gas stations in the U.S.

Next Weekend Gas Watch: Friday, September 6, 2019

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AAA provides automotive, travel and insurance services to 58 million members nationwide and nearly 79,000 members in the District of Columbia.  AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years.  The not-for-profit, fully tax-paying member organization works on behalf of motorists, who can now map a route, find local gas prices, discover discounts, book a hotel and track their roadside assistance service with the AAA Mobile app for iPhone, iPad and Android. For more information, visit  https://aaa.com