Labor Day pump price average cheapest in 16 years

The statewide gas price average in Texas is $1.91 for a gallon of regular unleaded fuel, according to the AAA Texas Weekend Gas Watch. That price is one cent less than on this day last week and is 37 cents less per gallon compared to this day last year. Of the major metropolitan areas surveyed in Texas, drivers in Odessa are paying the most on average at $2.13 while drivers in San Antonio are paying the least at $1.81 per gallon. The national average price for a gallon of regular unleaded is $2.23, which is the same as compared to this day last week and 34 cents less than the price per gallon at this same time last year.

Pump prices have been relatively steady despite disruption to the oil and gas industry in the Gulf of Mexico after Hurricane Laura made landfall last week. Balancing forces in the market, such as decreasing gasoline demand across the country and a slight reduction in regional gasoline supply, could be behind the slow pump price movement. As for the outlook on fuel prices, the impact to oil and gas facilities in the Gulf region from Hurricane Laura could be felt for some time. Industry analysts caution that if platforms and rigs are offline for an extended amount of time, supply could tighten, and gas prices could be impacted.

“Texas pump prices are setting up to be the cheapest for a gallon of regular unleaded on Labor Day since 2004,” said AAA Texas spokesperson Daniel Armbruster. "This shows just how much of an impact the COVID-19 pandemic has had on fuel prices, even after a major hurricane interrupted refinery operations in the Gulf of Mexico.”