Cheaper gas prices due to COVID-19 along with reduced demand for fuel contribute to lessened amount of “labor” needed to fill your car amidst historical unemployment rates
Vermont Business Magazine Gasoline prices this Labor Day are set to be the lowest since 2004 according to GasBuddy, the travel and navigation app used by more North American drivers to save money on gas. The company predicts a national average of $2.19 per gallon, down nearly 37 cents from last year and the lowest priced Labor Day since 2004’s $1.82 per gallon average.
The Vermont statewide average is already a bit lower than the national average, as is the average in Burlington.
“With Hurricane Laura now behind us and many refineries returning to service, gas prices will begin to head lower just in time for the Labor Day weekend,” said Patrick De Haan, head of petroleum analysis. “This will be the lowest Labor Day weekend gas prices since 2004, closing out an incredible summer at the pump with the most stable and lowest overall price from Memorial Day to Labor Day since 2004 as well. For motorists, the good news doesn’t end with Labor Day: gas prices will likely continue falling as seasonal factors kick in, reducing demand, and in addition, we switch back to cheaper winter gasoline in just a couple of weeks.”
Given the drop in gas prices, GasBuddy’s study on how many hours motorists need to work to pay their annual gasoline expenses found that U.S. motorists can work 19% fewer hours on average to pay their annual gasoline bill (72.3) compared to 2019 (88.9).
“Despite the drop in amount of labor needed to fuel the car, it is sadly juxtaposed with historic unemployment rates,” said De Haan. “Fewer hours of work required to fill a gas tank does not offer much relief for millions of Americans without jobs across the country.”
Drivers in Idaho have to work the highest number of hours to afford their annual gasoline expenses (91.6 hours), followed by Nevada (90.0) and Montana (85.7). In 2019, Nevada was in first place for the highest number of hours needed to pay an annual gasoline bill.
Meanwhile, Burlington gas prices have risen 0.4 cents per gallon in the past week, averaging $2.18/g today, according to GasBuddy's daily survey of 100 stations. Gas prices in Burlington are 0.7 cents per gallon lower than a month ago and stand 56.6 cents per gallon lower than a year ago.
According to GasBuddy price reports, the cheapest station in Burlington is priced at $2.05/g today while the most expensive is $2.25/g, a difference of 20.0 cents per gallon. The lowest price in the state today is $1.96/g (Middlebury) while the highest is $2.59/g (Stowe), a difference of 63 cents per gallon.
The national average price of gasoline has risen 3.5 cents per gallon in the last week, averaging $2.22/g today. The national average is up 4.0 cents per gallon from a month ago and stands 34.4 cents per gallon lower than a year ago.
Historical gasoline prices in Burlington and the national average going back ten years:
August 31, 2019: $2.75/g (U.S. Average: $2.57/g)
August 31, 2018: $2.97/g (U.S. Average: $2.83/g)
August 31, 2017: $2.49/g (U.S. Average: $2.51/g)
August 31, 2016: $2.26/g (U.S. Average: $2.22/g)
August 31, 2015: $2.41/g (U.S. Average: $2.47/g)
August 31, 2014: $3.62/g (U.S. Average: $3.43/g)
August 31, 2013: $3.76/g (U.S. Average: $3.58/g)
August 31, 2012: $3.84/g (U.S. Average: $3.83/g)
August 31, 2011: $3.63/g (U.S. Average: $3.61/g)
August 31, 2010: $2.70/g (U.S. Average: $2.65/g)
Neighboring areas and their current gas prices:
Albany- $2.31/g, up 4.6 cents per gallon from last week's $2.27/g.
Vermont- $2.17/g, up one cent per gallon from last week's $2.16/g.
New Hampshire- $2.12/g, up 2.3 cents per gallon from last week's $2.10/g.
"Gas prices have reached their highest post-coronavirus level as Hurricane Laura caused Gulf Coast refineries to shut, limiting production as gasoline demand edged higher," said Patrick De Haan, head of petroleum analysis for GasBuddy. "The rebound in demand comes with just a week left in the summer driving season and isn't expected to continue once the driving season wraps up, but while some may see prices tick higher over the next few days, more decreases are coming to gas prices once Labor Day is over as demand will likely move lower. In addition, the switch back to cheaper winter gasoline will happen in a few weeks, giving more potential downward momentum for prices."
Methodology
The study looked at the latest state-by-state median wage data available from the Department of Labor (May 2019), as well as data from GasBuddy’s payments card, Pay with GasBuddy, to calculate average yearly demand by state, using the average price on record, by state, on August 14, 2020.
*$2.19/gal predicted.
About GasBuddy
For budget-minded drivers, GasBuddy is the travel and navigation app that is used by more North American drivers to save money on gas than any other. Unlike fuel retailer apps, as well as newer apps focused on fuel savings, GasBuddy covers 150,000+ gas stations in North America, giving drivers 27 ways to save on fuel. That’s why GasBuddy has been downloaded nearly 90mm times – more than any other travel and navigation app focused on gas savings. GasBuddy’s publishing and software businesses enable the world’s leading fuel, convenience, QSR and CPG companies to shorten the distance between the North American fueling public and their brands. For more information, visit https://www.gasbuddy.com.
Source: BOSTON (September 1, 2020) – GasBuddy http://www.vermontgasprices.com/