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Gasoline Prices are Expected to Drop after Labor Day

Driving season throughout the summer ends on Labor Day. While gas prices are high, the U.S. has not experienced the extended period of extremely high costs as some had anticipated. Over the three-day holiday weekend, gas prices will keep falling by more than two months as Americans continue to drive less and conserve Gasoline.

Since June 14, when the national average price of unleaded Gasoline peaked at slightly under $5.00 per gallon, prices have started declining. The national average for a gallon of Gasoline on Monday was $3.79. Patrick DeHaan, chief of petroleum analysis at GasBuddy, stated that he believes the good news will continue for the time being. In the absence of a refining disruption, he said, Gasoline prices should continue to fall throughout the fall. Most of the nation’s refining capacity is located along the Gulf Coast of the United States.

Between Halloween and Thanksgiving, DeHaan wants to see us reach $3.49. If no significant hurricanes hit the Gulf Coast or additional refinery outages, there is a remote possibility that the national average will fall as low as $3.29. He warns that the decline could momentarily stall and even reverse in some regions, such as California and the Midwest. On Friday, prices in those locations’ spot markets were climbing. He suggested that one explanation could be the week-long outage at BP’s Whiting, Indiana refinery in Indiana. According to BP, the refinery’s 435,000 barrel per day output only recently resumed Friday. Four hundred thirty-five thousand barrels are processed daily by the refinery.

The South has the states with the cheapest gas prices. According to AAA, unleaded Gasoline costs drivers an average of $3.26 in Texas, $3.28 in Arkansas, and $3.26 in Mississippi per gallon on Monday. Some jurisdictions continue to have substantially higher prices than others, such as California, where the average gallon costs $5.26, and Nevada, where it costs $4.84.

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