But in much of the country, gas is even cheaper. Nearly a third of gas stations surveyed have gas for less than $2, according to the Oil Price Information Service, which compiles gas price data for AAA. There are eight states – Texas, Oklahoma, Louisiana, Alabama, Arkansas, Missouri, Mississippi, and Tennessee — where the average price is below $2.
In the 32 states outside the East and West coasts, gas prices haven’t been this cheap over Labor Day weekend in 16 years, according to OPIS. That’s true even as many states have raised gas taxes during that time.
The reduced demand for gasoline due to the Covid-19 pandemic has caused a glut of both oil and gas, driving down prices.
And cheap gas is likely to be around through the end of the year according to Tom Kloza, OPIS’s global head of energy analysis.