Most motorists think they have it figured. They say gas prices always rise for the holiday. Well, they have for the last two Labor Day weekends, but they don't always. So if gas prices aren't rising because the holiday, why are they going up this time?
Well, if you've been paying attention to the news, you probably have seen what's going on in the Middle East- specifically with Syria. With military talk on table, there's concern that any short lived war could cause supply disruption, as it did when Libya flared up back in 2011. When there is unrest anywhere in the Middle East, it will cause oil prices to climb, and this time around there is no exception.
Second, in prior years, hurricane season has come into play. Disruption to any side of the supply chain will cause prices to go up. Make no mistake- it doesn't matter if it's Syria, or a major hurricane. Any possible significant impact to oil production or gasoline will send prices higher. If there's any holiday that even comes remotely close to holding the statement that gas prices go up for holidays, it's Labor Day and Memorial Day. For completely different reasons.
After Labor Day, prices generally decline, but with the situation likely to last weeks in Syria, there may be little relief until mid-September, when winter gasoline returns to much of the nation.
For now, have a safe weekend, and don't forget your GasBuddy app while you travel this holiday weekend! Happy Labor- or should I say Labour (for our Canadians!) Day weekend!