After hitting a yearly high this month, will gas prices go down after Labor Day?

Jul 28, 2023

(WXYZ) — We're just two days away from the start of Labor Day weekend, and that means there will be plenty of people hitting the road to enjoy the last unofficial weekend of summer.

Finally, drivers are getting some relief at the pump as gas prices are going down. Earlier this month, they set record highs for the year.

However, some people are skipping out on the fun because of gas prices.

There is good news in sight, however. Gas prices around the state and metro Detroit are down right now, according to Adrienne Woodland, a spokesperson for AAA.

"For the first time in about seven weeks, average gas prices nationwide and in Michigan are inching down," Patrick De Haan, the head of petroleum analysis at GasBuddy, said.

Gas prices did spike this summer as refineries shut down in the south due to extreme heat.

“It definitely looks like the refineries are back up and running. We have seen a big increase in gasoline stock," Woodland said.

But there is one factor that could push prices up once again – hurricane season.

"With hurricane Idalia now churning out in the Caribbean, a good reminder that hurricanes can still have an impact on gas prices, especially if they disrupt refineries down in Golf Coast, areas like Louisiana and Texas. I don’t expect Idalia to have an impact on prices but other storm systems behind it certainly could," De Haan said.

Also, De Haan said diesel prices are up and are at their highest levels since spring, a trend that will likely continue.

That could impact the price of other goods and the cost to ship them.

Even with the prediction of overall gas prices going down, drivers are still remaining skeptical.

Finally, gas stations will soon start switching over to the cheaper winter blend of gasoline. Along with a typical drop in demand after Labor Day, gas prices are expected to continue to go down.