Gas Prices May Drop Below $4/Gallon by Labor Day, But Analyst Warns It Won't Be a Bargain

Analyst Patrick De Haan of GasBuddy believes that by Labor Day, the national average gas price in the US could drop below $4 per gallon. However, he warns that it may still be one of the most expensive prices ever during this time.

The current uncertainty surrounding global oil supply due to the war in Iran and the Russia-Ukraine conflict is contributing to the potential decline in gas prices. The West Texas Intermediate (WTI) crude had fallen below $80 per barrel at the time of De Haan's statement, with some states already switching back to winter gasoline.

Despite the predicted drop, De Haan notes that oil and gas prices remain volatile due to various factors, including geopolitical tensions. The national average price for a gallon of gas surged to $4.1014 on Wednesday, while diesel prices reached $5.6230 per gallon, according to AAA data.