Gas prices fall as Labor Day approaches
Gasoline prices in the Los Angeles region fell ahead of Labor Day weekend travel, making for the cheapest end-of-summer road trips in years.
The average price for a gallon of gasoline in the L.A. area Friday was $3.51, according to the Automobile Club of Southern California, which is the lowest pre-Labor-Day price since 2010. That average is more than 30 cents lower than a year earlier but remained more than $1 higher than the average price nationwide.
AAA reported the U.S. average was $2.42, the lowest price ahead of Labor Day since 2004.
California gasoline prices are typically higher than the national average. But this year, they also have been boosted by refinery outages, most notably the Exxon Mobil Torrance plant that has been producing less than 20% of capacity since an explosion there in February.
Regulators are reviewing a plan to increase the plant’s production to as much as 85%. That refinery accounts for 10% of the state’s overall gas-making capacity and 20% of Southern California’s capacity.
“While the national average gas price is $1 or more below most Southern California areas, local prices are dropping at a more rapid rate than in most other states,” Auto Club spokesman Jeffrey Spring said.
“Southland residents visiting the No. 2 Labor Day travel destination, Las Vegas, will pay about 50 cents less a gallon to fill up there, and those visiting Arizona will pay about $1 a gallon less than prices in Los Angeles,” he said.
Falling gasoline prices are expected to spur more travel.
The Auto Club forecast that 2.5 million Southern California residents will travel for the holiday weekend, a 1% increase over last year’s holiday. And 86% of them will by driving.
Gasbuddy.com said lower pump prices are expected to save motorists $1.4 billion this Labor Day weekend.
“I’m sure motorists will have plenty of company on the nation’s thoroughfares this weekend,” said Patrick DeHaan, senior petroleum analyst for GasBuddy.com.
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