U.S. Labor Day 2025: Gas Prices Drop to Lowest Level Since 2020

This year’s Labor Day in the United States comes with a noticeable drop in gasoline prices, reaching their lowest levels since 2020, when the COVID-19 pandemic caused sharp declines.

According to a recent analysis by GasBuddy, the national average price of gasoline is expected to reach $3.15 per gallon, down 14 cents from last year—a 5% decline just before the holiday weekend.

White House Response

The White House welcomed the drop as evidence of President Trump’s fulfillment of campaign promises. Spokesperson Taylor Rogers stated that citizens saved significant amounts at the pump throughout the summer, adding: “The president unleashed American energy and made daily life more affordable for families.”

Global Oil Prices Drive the Decline

The decrease is largely tied to lower global crude oil prices. Brent crude averaged $67 per barrel in August, nearly 15% lower than the same month last year. The U.S. Energy Information Administration projects that gas prices may continue to decline in the coming months, potentially dropping below $3 per gallon this fall, driven by the seasonal switch to less expensive winter fuel blends.

Regional Price Differences

Despite the national average decline, regional variations remain clear:

• West Coast: Highest average at $4.11 per gallon, due to high taxes and strict California fuel standards.

• Gulf Coast: Lowest average at $2.69 per gallon, thanks to abundant refining and lower taxes.

• East Coast: Prices fell to $2.99, compared to $3.25 last year.

• Midwest: Stable at around $3.08 per gallon.

Political and Economic Implications

With millions of Americans expected to travel over Labor Day weekend, fuel costs are a critical factor in household budgets. As the midterm elections approach, gasoline prices remain a central battleground in political and economic debates, with both parties eager to shape the narrative around affordability and energy policy.