Gas Prices Nearly $1 Higher Than Last Year: When Could They Drop?

Chris Wright expects gas prices to decline after Labor Day as demand falls, with regular gasoline currently costing almost 30% more than it did one year ago.

The Energy Secretary said the market anticipates a significant decline in gas prices and identified lower demand after the summer as one factor that could provide relief.

• Why it matters: Regular gasoline averages $4.1505 per gallon, according to AAA, compared with $3.1971 one year ago—an increase of nearly 30%.

Wright Expects Gas Demand to Fall After Labor Day

During an interview with ABC News, Wright was asked when prices might begin declining and whether consumers would receive relief before the November elections.

The secretary noted that November gasoline futures were approximately 35 cents below the current price, indicating that the market expects a decline.

Wright added that demand generally begins falling after Labor Day as the summer travel season ends.

• The clarification: Wright did not ask Americans to drive less. He explained that fuel consumption typically decreases seasonally after the summer.

According to Wright, the administration has also modified specifications to allow refineries to produce more gasoline and diesel.

A Family With Two Vehicles Could Pay $877 More

The difference from last year illustrates how much the increase could cost households that depend on their vehicles every day.

The Federal Highway Administration (FHWA) estimates that light-duty vehicles consumed an average of 460 gallons of fuel per vehicle in 2024.

If a household with two vehicles maintained that consumption level, it would use approximately 920 gallons annually as a reference.

• Last year: Purchasing 920 gallons at $3.1971 would cost approximately $2,941 annually.
• Today: The same amount at $4.1505 would cost approximately $3,818.

The difference would be approximately $877 per year, or an additional $73 per month.

This is an illustrative estimate, not an official measure of household spending. Actual costs depend on how much each household drives, vehicle fuel efficiency, and other factors.

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When Will Gas Prices Drop in the United States?

Wright’s forecast comes as the war with Iran continues affecting energy markets and the flow of oil through the Strait of Hormuz.

ABC reported that Americans have faced elevated prices for more than six months. Trump has defended the additional cost as a consequence of his administration’s actions against Iran.

Wright, however, declined to guarantee when relief would arrive and said he wanted to observe the market before offering his own forecast.

• The question: If your household is paying approximately $73 more per month based on the example above, do you think lower demand after the summer will be enough to reduce gas prices in the US?