Slow demand growth depresses gas prices ahead of Labor Day weekend

Rachel McDevitt

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I report on energy and the environment for StateImpact Pennsylvania at WITF.

My work focuses on responses and solutions to climate change in the state legislature and communities around the state. I trace my interest in these issues back to my time as a Girl Scout and this episode of Rocko’s Modern Life.

I look forward to winter just for the chance to ski a few times each season. I try to keep myself from doom-scrolling on my phone by keeping my hands busy knitting and learning to play the piano.

I grew up in Cambria County, Pa. and graduated from Temple University. I started at WITF just after Christmas in 2014.

August 29, 2024 | 5:35 PM

Gas prices are cooling heading onto the Labor Day weekend.

The federal Energy Information Administration says, nationally, gas prices are 13% lower than last Labor Day.

AAA says the average price per gallon of regular in Pennsylvania is $3.49 as of Aug. 29, down from $3.88 a year prior.

Prices are down significantly from AAA’s highest recorded average price of $5.07 per gallon in June 2022. The EIA says oil prices were driven higher that year because of disruptions caused by Russia’s invasion of Ukraine. Markets have since adjusted to new trade patterns.

The EIA says petroleum prices have been declining this year because of weak growth in global demand and a slowing economy in China.

The agency estimates U.S. demand heading into this holiday weekend is greater than last year, but there is 3% more gasoline in national inventories.

Analysts at the price-monitoring website GasBuddy say the average cost per gallon could fall under $3 this fall.

Patrick De Haan, GasBuddy’s head of petroleum analysis said hurricane season has been relatively quiet, reducing impact on refineries and prices.

“With no threats to major gasoline and diesel producing refineries, it’s looking more and more likely that we may avoid a late summer price spike,” De Haan said. “As we get closer to Thanksgiving, we should see tens of thousands of stations ultimately fall back below that [$3] level, all thanks to falling seasonal demand and cheaper winter gasoline, which is right around the corner.”

AAA notes the national average price to fuel an electric vehicle at a level 2 commercial charger is 34 cents per kilowatt, which has been steady over the last month.

For an average-sized battery in a fully electric vehicle, a full charge would cost about $25.