Gas prices still low as Labor Day draws near

WASHINGTON -- U.S. drivers heading into the last vacation weekend of the summer are enjoying the lowest gasoline prices in almost five months, the government said Monday.

The national price for regular gasoline fell 3.6 cents over the last week to $2.75 a gallon, and was down nearly 10 cents from a year ago, the federal Energy Information Administration said in its weekly survey of service stations.

The average pump price is at the lowest level since April 2, the EIA said.

Gasoline costs typically are steady and sometimes rise during the three-day Labor Day holiday weekend, when fuel demand picks up as many Americans squeeze in one more vacation trip for the summer.

Also likely to affect pump prices this week are recent refinery problems and traders' concerns about supplies, which have sent crude oil and gasoline futures prices higher on the New York Mercantile Exchange.

In the EIA's new weekly price survey, retail gasoline was the most expensive in the Midwest, down 3.1 cents to $2.84 a gallon. Among major cities, Chicago had the highest gasoline costs at $3.03, down 4.4 cents.

Separately, the average price truckers paid for diesel fuel fell half a penny to $2.86 a gallon, down 16 cents from a year ago.

The West Coast had the most expensive diesel at $2.97, down 3.1 cents. The lower Atlantic states had the most affordable diesel at $2.80, down almost a penny.