AAA Texas: San Antonio gas prices unchanged, Texas average drops before Labor Day

SAN ANTONIO (KTSA News) — It may seem surprising that gas prices are not shooting upward as Labor Day weekend closes in.

The average price for regular unleaded in San Antonio is unchanged from this time last week as Alamo City drivers are paying $3.39 per gallon.

The statewide gas price average in Texas is $3.42 for a gallon of regular unleaded fuel, according to the AAA Texas. That price is two cents less than on this day last week and is six cents more per gallon compared to this day last year.

“While gas prices have increased slightly in the last few days, holiday travelers will see pump prices fairly close to where they were a year ago,” said Daniel Armbruster, AAA Texas spokesperson. “Demand for fuel remains strong which could cause prices to further increase over the holiday. AAA Travel bookings are four percent higher compared to Labor Day 2022 and Hurricane Idalia also put upward pressure on fuel prices.”

While the statewide gas price average is down from a week ago, it has increased slightly over the last three days. This suggests price fluctuations remain possible through the holiday weekend. There are two key factors that could cause gas prices to further increase in the days ahead — busy holiday travel and Hurricane Idalia.

Of the major metropolitan areas surveyed in Texas, drivers in El Paso are paying the most on average at $3.93 per gallon while drivers in San Angelo are paying the least at $3.27 per gallon. The national average price for a gallon of regular unleaded is $3.82, which is two cents less when compared to this day last week and two cents less than the price per gallon at this same time last year.

Travel Demand

It’s been a record summer for travel and there will be more pressure on demand for fuel this Labor Day. AAA Travel domestic bookings are four percent higher for the holiday over last year. This could mean gas prices will increase in the days to come. Supplies for fuel remain healthy, but have dropped week to week.

Hurricane Impact

Hurricane Idalia caused three refineries to temporarily shutdown along on the gulf coast, which could put upward pressure on fuel prices. Typically following a hurricane that impacts oil/gas operations there can be brief spikes in pump prices. As the market settles and supply/demand rebalance, prices usually come down after a couple of weeks. Crude prices rose as Idalia made landfall along Florida’s gulf coast. Crude accounts for 50% of the cost of gasoline.