GasBuddy has released its annual Labor Day gas price forecast, predicting that average gas prices on the last summer holiday weekend of 2025 will be $3.15 per gallon, 14 cents lower than in 2024, and the lowest price at the pump since Labor Day since 2020.
Average gasoline prices this week in Chattanooga are $2.66/g, which is 7.1 cents per gallon lower than a month ago and 8.5 cents per gallon lower than a year ago.
“Labor Day marks the unofficial end of summer, and when it comes to gas prices, it’s been the cheapest summer to hit the road since the pandemic, a trend that will likely continue with the potential for the national average to fall below $3 per gallon this fall,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
While it will be the most affordable Labor Day weekend to fill up for most in the last five years, gas prices in nearly half of all states have risen in the last month due to localized refinery outages. However, 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 temperatures start to cool off.
“We’ve seen a remarkably affordable summer to hit the road with incomes up and gas prices down, but there are some challenges that remain: hurricane season and uncertainty over trade, tariffs and Russia’s war on Ukraine," De Haan added. "However, I remain optimistic that as cooler weather invades, gas prices too, will seasonally cool off.”
5 Years of Average Labor Day Gas Prices:
- 2020: $2.22/gal
- 2021: $3.16/gal
- 2022: $3.79/gal
- 2023 $3.77/gal
- 2024: $3.29/gal
- 2025: $3.15/gal (projected)
GasBuddy recommends drivers looking to save money on travel costs over Labor Day weekend shop around for the best gas prices along their route, using a tool like the GasBuddy app. Drivers can also become a Pay with GasBuddy+ member for a guaranteed 3-5c per gallon off on every fill up.