MONEY Gas

Labor Day Gas Prices Are Cheapest in Years

friends consulting a map while sitting on the back of a car
Cavan Images—Getty Images

Gas prices usually drop in the fall. This year, prices at the pump began falling in early summer and kept on heading down, resulting in the cheapest holiday weekend for gas since 2010.

Earlier this month, an Edmunds survey indicated that as many as three-fourths of all Americans were likely to take a road trip before Labor Day weekend marked the unofficial end of summer. According to AAA, nearly 35 million Americans will be heading at least 50 miles away from home over the holiday weekend, and 86% of travelers will be embarking on their journey by car.

This means that roads are likely to be jammed over Labor Day. There is some good news for those stuck in traffic, however. It’s been years since gas has been this cheap over Labor Day weekend. “AAA expects gas prices to have little impact on the number of people traveling for Labor Day, though lower prices could help make travel more affordable,” a statement from automobile association explained.

Gas prices dropped steadily throughout July, with the national average hitting $3.52 at the end of the month. As of Thursday, a gallon of regular gasoline was averaging $3.43 around the country. That’s about 13¢ cheaper than prices were a year ago at this time. In fact, the last time that gas was priced this low leading into Labor Day weekend, it was 2010. Gas prices spiked to around $3.75 for Labor Day 2012, for instance.

Even though gas prices are cheaper, that doesn’t really mean they’re truly cheap. As recently as the fall of 2008, the national average stood at around $2 per gallon, thanks to a falloff in demand due to the economic crisis. In any event, drivers should always be taking advantage of easy ways to save on gas. Two no-hassle strategies to consider: credit cards with 5% cash back on gas purchases, and Walmart’s Rollbacks on Gas program. The latter involves using various Walmart-branded cards (prepaid debit, gift cards, plain old credit cards) to pay for gas, with savings ranging from a flat $25 off to 15¢ off per gallon. These options can save you money at the pump this weekend, but the clock is ticking on both. Walmart’s gas savings program ends September 8, and most credit cards only pay 5% cash back on gas through the end of September.

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