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A 79th consecutive day of gas price declines means relief at the pump for many Labor Day drivers

Some larger states like California, New York and Illinois are still seeing $4-a-gallon gas, however.
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Gas prices have now declined for 79 consecutive days amid falling global oil prices, sending the national average price per gallon to its lowest level since March.

However, some cities and states continue to see prices above $4 per gallon, creating an uneven landscape for U.S. drivers heading into the busy Labor Day weekend.

Data from AAA show the national average gas price now sits at $3.81 per gallon. That compares with $4.20 one month ago, though remains well above the year-ago price of $3.18.

Prices across the West Coast sit substantially higher than the national average, with drivers in Los Angeles seeing the highest-recorded Labor Day gas prices ever, the Los Angeles Times reported, at $5.25 a gallon.

Western states tend to have higher gas taxes, and are located further away from the fuel processing hubs in Oklahoma, Texas and Louisiana. Illinois, too, which has some of the highest gas taxes in the nation, is seeing prices nearly a dollar higher than last year's Labor Day; the state average is currently $4.14, according to AAA.

Northeast states are also seeing higher prices, as they experience tight supplies of gasoline. The average price in New York stood at $4.06 a gallon Friday.

Still, the national-average gas price is likely to head even lower from here as the price of oil continues to fall, said Andy Lipow, president of Lipow Oil Associates LLC, in a note to clients. Russia’s war on Ukraine has caused sharp declines in demand for oil on the rest of the continent, he said.

“Fears of a recession, especially starting in Europe and spreading to the rest of the world are increasing,” he wrote.

He predicted U.S. gas prices are likely to fall to $3.70 by the middle of September, and as low as $3.50 by Halloween, if not sooner.