Gasoline Prices Fall Across Much of U.S. Ahead of Labor Day

LEWISTON, ID – Most drivers across the country are heading into Labor Day Weekend paying less at the pump than they did a year ago, according to the U.S. Energy Information Administration (EIA). The national average price for regular gasoline stood at $3.21 per gallon as of Thursday morning, down 15 cents from the same time last year.

The decline is tied largely to falling crude oil prices. From August 1 to August 25, Brent crude oil averaged $67 per barrel, about 15% lower than in August 2024. The EIA expects gasoline prices to drop another 35 cents per gallon by December, as global oil supply continues to grow and refiners shift to producing less costly winter-grade fuel.

Despite the national decrease, regional prices vary. The West Coast is the only U.S. region where gasoline prices are higher than last year. The EIA points to limited refining connections, higher state taxes, and California’s costly fuel specifications as reasons for consistently higher prices in the region. By contrast, the Gulf Coast maintains the nation’s lowest gasoline prices, with more refining capacity and lower taxes than the national average.

In the Northwest, prices are above the national average. In Idaho, regular gasoline averaged $3.48 per gallon on August 28, compared with $3.60 a year ago. Prices have edged down slightly over the past week.

In Washington state, drivers are paying significantly more than last year. Regular gasoline averaged $4.40 per gallon this week, up from $4.17 a year ago. Washington prices have remained steady in recent weeks, continuing to rank among the highest in the country.

Nationally, crude oil costs account for just over half of the retail gasoline price, with refining, distribution, and taxes making up the rest. Since its peak earlier this summer, gasoline has trended downward in most regions — with the exception of the West Coast.

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