U.S. retail gasoline prices lower than last year heading into Labor Day

August 29, 2025 Stu Turley Diesel, EIA News, Gasoline, Top News, US Energy News
U.S. retail gasoline prices lower than last year heading into Labor Day

weekly average U.S. regular gasoline retail prices

Data source: U.S. Energy Information Administration, Gasoline and Diesel Fuel Update

On August 25, 2025, the Monday before Labor Day weekend, the retail price of regular gasoline averaged $3.15 per gallon (gal) across the United States, 5% (or 17 cents/gal) lower than at the same time last year.

The cost of crude oil typically accounts for a little more than half of the retail gasoline price. Falling crude oil prices, driven by increasing global crude oil supply, have contributed to lower retail gasoline prices heading into this Labor Day. From August 1 to August 25, Brent crude oil prices averaged $67 per barrel, about 15% less than in August 2024.

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We forecast gasoline prices will decline 11%, or about 35 cents/gal, from August to December. The forecast decline is driven by our expectation that crude oil prices will fall, caused by continued oil supply growth. In addition, the annual transition to winter-grade gasoline allows refiners to use less expensive components to produce gasoline, further contributing to lower gasoline prices.

U.S. gasoline prices vary regionally, reflecting local supply and demand conditions, state fuel specifications, and state taxes. The West Coast is the only U.S. region where gasoline prices are higher headed into Labor Day this year than last. Retail gasoline prices are usually the highest on the West Coast because of:

  • The region’s limited connections with other major refining centers
  • Tight local supply and demand conditions
  • Higher-than-average state taxes in several West Coast states
  • Gasoline specifications for California that make gasoline more costly to produce

By comparison, gasoline prices on the Gulf Coast are usually the lowest of any U.S. region. Gulf Coast states are home to more than half of U.S. refining capacity, and more gasoline is produced than is consumed in the region. Gulf Coast states also have lower gasoline taxes than the national average.

Principal contributor: Alex de Keyserling

Source: Eia.gov

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About Stu Turley 4800 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.

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