gas_savings_labor_day

Save at the pump: Labor Day weekend gasoline prices lowest in a decade

Drivers hitting the road for the Labor Day travel weekend will find good news at the gas pump. The average price for gasoline will be the lowest in a decade for the busy travel weekend, according to AAA.

AAA estimates that 35.5 million Americans will travel for Labor Day, the highest travel volume since 2008 and a small uptick from 2014. About 86 percent of travelers will drive and 7 percent will fly.

The nation’s average price of regular gasoline was $2.43 on Thursday. That’s $1.00 lower than it was a year ago. South Carolina’s average was $2.00, the lowest in the nation. Some other states in the southeast are nearing the $2.00 mark.

Paying less to fill the tank means more Americans have disposable income and are likely to take a final trip for the summer season. The increase in travel volume, however, is moderate because many consumers are using an increase in their personal income to save money and pay debt, according to AAA.

After the Labor Day holiday travel weekend, prices are expected to continue falling and could hit $2.00 or less by the end of the year. Gasoline demand drops when summer’s busy driving season comes to a close.

Happy Labor Day from the TaxSlayer team!

By the numbers:

$1.85: Labor Day gas price in 2004

$3.83: Labor Day gas price in 2012

$2.43: National average on Thursday

Source: AAA Fuel Gauge Report

 

Did you know:

Taxpayers can deduct mileage accumulated for business, charitable, medical and moving purposes. The standard IRS mileage rates beginning Jan. 1, 2015 for a car, van, pickup or panel truck:

-57.5 cents for business miles

-23 cents for medical or moving purposes

-14 cents for driving for charitable organizations