Memorial Day Gas Prices Expected to Drop

As Memorial Day weekend approaches and millions of Americans prepare for travel, there’s good news at the gas pump. Analysts predict a slight drop in gas prices across the U.S. just in time for the unofficial start of summer.

The current national average price for a gallon of gas is $3.64, down two cents from last week. This puts the price just slightly higher than it was at this time last year. AAA spokesperson Andrew Gross expects gas prices to remain relatively stable in the coming weeks, attributing this trend to decreasing oil prices. While the Brent Crude Oil has recently risen to $83.5 per barrel, it remains lower than last month’s levels by nearly $8.

Patrick De Haan, GasBuddy’s head petroleum analyst, also anticipates lower prices leading up to Memorial Day. He notes that wholesale gas prices are at their lowest since February. De Haan suggests that some stations could even drop prices to $2.99 per gallon by July 4, particularly in the South and Great Plains regions.

Furthermore, U.S. gas inventories have increased by 4% compared to this time last year, totaling 227.1 million barrels as of late last month. This increase is a positive sign for drivers, indicating a potentially more stable market.

However, not all states will benefit from these lower prices. California currently has the highest average gas price at $5.33 per gallon, followed by Hawaii ($4.82), Washington ($4.66), Nevada ($4.51), and Oregon ($4.45). These higher prices are typical for West Coast states due to factors such as shipping costs and state gas taxes. On the other end of the spectrum, Mississippi has the lowest average gas price at $3.11, followed by Oklahoma ($3.17), Kansas ($3.20), Louisiana ($3.20), Colorado ($3.22), Texas ($3.25), Minnesota ($3.26), and New Mexico ($3.26), according to AAA.

In terms of travel, AAA expected 42.3 million Americans to travel at least 50 miles over the Memorial Day weekend last year, making it the third busiest Memorial Day weekend in over two decades. Most of these travelers (37.1 million) were expected to drive, marking a 6% increase over 2022, although still below pre-pandemic levels.

Gas prices in the U.S. have experienced significant fluctuations over the past two years, reaching an all-time high of over $5 per gallon in June 2022. These fluctuations are largely influenced by international energy market dynamics, including events like Russia’s invasion of Ukraine in 2022 and ongoing turbulence in the Middle East. Despite the typical seasonal increase in gas prices during the summer months, recent price hikes have been driven by global events and production cuts by major oil-producing countries.