Labor Day gas prices are expected to be the lowest since 2020. Gas Buddy has released its annual Labor Day gas price forecast. They say the price for gas on the last summer holiday weekend of 2025 will be an average of $3.15 per gallon, 14 cents lower than in 2024, and the lowest price at the pump since Labor Day 2020. Gas prices in nearly half of all states have actually risen in the last month due to localized refinery outages. But, Gas Buddy says motorists can expect more relief to arrive in the weeks ahead as much of the nation will see the transition back to cheaper winter gasoline in mid-September. Gasoline demand will also soon begin to fall with the conclusion of the summer, as motorists take fewer road trips and as the temperatures start to cool off. Gas Buddy says they still expect the potential for the national average to fall below $3 per gallon this fall, barring any major hurricanes or an escalation in Russia's war in Ukraine.