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Gas prices heading into the Memorial Day weekend hit a four-year low as millions of Americans prepare to hit the road.
When adjusting for inflation, the average U.S. retail gasoline prices going into Memorial Day weekend are 14% lower than last year, in large part because of falling crude oil prices, according to the U.S. Energy Information Administration (EIA).
On Monday, for instance, the retail price of regular-grade gasoline in the U.S. averaged $3.17 per gallon, 11% lower than a year ago, the EIA reported.
Retail gasoline prices increased 19%, or 49 cents per gallon, on average from January to May for the last 10 years, excluding 2020, according to the EIA. However, gas prices typically increase heading into the spring and summer months due to factors such as increased demand for summer travel and refineries switching over to summer gasoline blends, which are more expensive to produce.
A record 45.1 million people are expected to travel at least 50 miles from home over the Memorial Day holiday period despite concerns over rising costs, according to AAA. (REUTERS/Eduardo Munoz / Reuters Photos)
OIL PRICES ARE DOWN OVER LAST 6 MONTHS: WHAT DOES IT MEAN FOR GAS PRICES?
West Coast prices averaged $4.29 per gallon on Monday, down 10% from this time last year, according to the EIA. Meanwhile, Gulf Coast prices averaged $2.79 per gallon, down 13% from this time last year, and on the East Coast, which has the most gasoline demand of the five regions, retail gasoline prices have dropped 17% from 2024. Prices averaged $2.99 per gallon in the region as of Monday.
In the Midwest and Rocky Mountains, prices averaged $3.03 per gallon and $3.13 per gallon, respectively. That’s a decline of 15% and 12% from the prior year after adjusting for inflation, according to the EIA.
When adjusting for inflation, the average U.S. retail gasoline prices going into Memorial Day weekend are 14% lower than last year. ((Photo by Justin Sullivan/Getty Images) / Getty Images)
This comes as a record number of people – about 45.1 million – are expected to travel at least 50 miles from home over the Memorial Day holiday period despite concerns over rising costs, according to AAA.
AAA estimated that the majority of them, 39.4 million, will travel by car over Memorial Day weekend, which spans from Thursday to Monday.
GAS PRICES COULD FALL AS CRUDE OIL PLUMMETS, EXPERT SAYS
Lipow Oil Associates President Andy Lipow said pump prices are expected to remain between $3.25 and $3.50 per gallon this summer, well below last year’s levels.
Gas pump prices are expected to remain between $3.25 and $3.50 per gallon this summer, according to Andy Lipow. (Daniel Acker/Bloomberg via Getty Images / Getty Images)
He attributed this in part to tariffs that are contributing to putting pressure on oil prices on the expectation of slower growth, coupled with optimism from the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+. The group estimates that global oil demand will grow by 1.3 million barrels per day in both 2025 and 2026.
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Retail gasoline prices increased 19%, or 49 cents per gallon, on average from January to May for the last 10 years, excluding 2020, according to the EIA. (Luis Sinco / Los Angeles Times via Getty Images / Getty Images)
According to Bloomberg News, the group is also discussing whether to make another large output increase in June, causing oil prices to fall further.
Phil Flynn, Futures Group senior analyst and FOX Business Network contributor, said it appears that OPEC is going to raise production and take away more of their voluntary production cuts, which “comes as the market was slipping into a supply deficit.”
“This put a negative spin on prices but was another sign that OPEC wants to keep President Trump happy,” Flynn said.