Storms, Labor Day travel could bring gas price stability to an end

Aug. 28 (UPI) -- Retail gasoline prices for U.S. commuters were stable during the weekend, though storm activity in the Gulf of Mexico and the upcoming Labor Day holiday could change that, data show.

Travel club AAA on Monday put the national average retail price at $3.82 for a gallon of regular unleaded gasoline, unchanged over the weekend. Retail gasoline prices usually follow trends in the broader commodities sector and crude oil prices too have been in a holding pattern.

Competing economic trends may be supporting some of the stability as consumer spending remains strong amid lingering inflationary pressures and mounting debt.

Looking to the long Labor Day weekend, meanwhile, AAA is expecting a 4% increase in travel relative to last year.

"Labor Day weekend will be the big sendoff to what has been an extremely busy summer travel season," said Debbie Haas, a vice president of travel for AAA.

In terms of the price at the pump, AAA expects it to be similar to last year. At this point in 2022, the national average was $3.85 per gallon.

That could all change, however, should any of the storms in the Gulf of Mexico upend travel plans or disrupt the dense network of refineries in the region. Florida Gov. Ron DeSantis declared a state of emergency during the weekend for 33 counties in anticipation of Tropical Storm Idalia, deploying 1,100 of the state's National Guard troops and 2,400 high-wheel vehicles to respond to emergencies.

Florida has no refineries or pipelines of its own and, similar to last year, any major storm damage would pose a severe threat to gasoline supplies.

Idalia could strengthen to a hurricane on Wednesday. Hurricane Franklin, meanwhile, is approaching the Bahamas and its path is forecast to brush along the East Coast.