US Labor Day gas prices lowest in a decade

Gasoline prices in the United States continue to plummet and are expected to be the lowest for the Labor Day weekend since 2004.

The national average price for regular unleaded gasoline is currently pegged at $2.47 per gallon, 18 cents less than a month ago. Crude oil prices also declined about 96 cents per gallon less than a year ago.

Motorists are saving up on their gasoline expenses particularly in states such as Michigan, Ohio, Indiana, Illinois, California, New Jersey, Rhode Island, and Maine, according to the American Automobile Association (AAA).

In Broward County, Florida, regular gas prices averaged $2.43 per gallon, down 99 cents from last year, reported the Sun Sentinel in a separate report.

"Low gasoline prices are an added boost in disposable income, giving travelers more money to spend on lodging, shopping, and dining out," said AAA spokesman Mark Jenkins.

Declining prices can be attributed to the relatively low cost of crude oil as Brent and West Texas Intermediate (WTI) experienced multi-year lows - WTI was down at $38.25 per barrel as of August 24th, the lowest since February 2009, though it was able to recover at $45.22 before August ended.

Global crude oil prices are also expected to go down due to the current economic situation in China and the upcoming return of Iranian oil to the world market.

With savings in gas and a stronger US economy, the AAA predicts that around 35 million Americans are expected to take road trips during the Labor Day weekend, about 1 percent higher than last year.