Memorial Day Gas Prices to Hit Lowest Levels Since 2021, Analysts Say

As Americans gear up for Memorial Day weekend, they’ll find welcome relief at the pump. According to fuel tracking site GasBuddy, this year’s holiday travel will come with the lowest gas prices for Memorial Day since 2021—and when adjusted for inflation and wages, the cheapest since 2003, excluding the pandemic years.

Patrick De Haan, Head of Petroleum Analysis at GasBuddy, says the national average is expected to be $3.08 per gallon, about 50 cents lower than it was this time last year.

“It’s going to be the cheapest Memorial Day since 2021,” De Haan said. “But if you adjust for inflation and rising wages, Americans are actually going to spend the least amount filling up this Memorial Day since 2003.”

Gas prices have dropped in step with falling U.S. oil prices, which are down nearly 20% since mid-January. Aixa Diaz, spokesperson for AAA, explains that despite the usual summer driving surge, prices are still trending downward thanks to softening crude oil costs.

“Typically this is the time of year when we’d see higher gas prices,” Diaz noted. “But we’re still paying less because of those lower crude oil prices.”

However, the drop in gas prices also reflects a more uncertain economic outlook. De Haan points to factors like inflation, tariff concerns, and slowing consumer demand as reasons for the recent pullback in oil markets.

“As goes the economy, as go gas prices,” he said. “Right now, with the threat of tariffs and economic uncertainty, oil prices have faltered.”

De Haan warns that while low gas prices are usually a boost for consumers, recent dips in consumer confidence and ongoing layoffs could temper travel and spending this summer.

“Some of those economic jitters and some companies making layoffs could be impacting the psyche of many American travelers this summer,” he added.

Credit: CNN Newsource

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