Say goodbye to summer and to higher gas prices.
The AAA on Monday reported that gas prices continue to plummet and that most drivers nationwide will pay the lowest prices at the pump over the Labor Day weekend since 2004.
The drop in gas prices comes as oil prices marked their biggest three-day gain in about 25 years, jumping to $49.20 a barrel. Oil surged on reports that OPEC is talking about possibly cutting production, and the U.S. government reduced estimates on domestic production.
Michael Green, a spokesman for AAA in Washington, D.C., said the national average for gas on Labor Day in 2004 was $1.85. While prices this year “aren’t going anywhere close to that,” he said there are indications the price could drop more despite the sudden increase in oil.
“Crude oil is the biggest cost associated with gas, and it is a mystery as to where it will go for the rest of the year,” Green said. “Nothing is certain in crude oil prices at the moment.”
The drop in gas prices comes despite outages at refineries in the Midwest and East Coast. Across the nation, 45 states showed prices down by at least a nickel a gallon with 16 states enjoying a double-digit drop. Michigan led all states, with prices down 31 cents
