Memorial Day gas prices drop to lowest in years, but experts warn it may signal economic trouble

COLORADO SPRINGS, Colo. (KRDO)– Gas prices are tracking low this Memorial Day weekend – the lowest they've been in years, according to the American Automobile Association (AAA).

Memorial Day marks the start of summer travel, and for many, it's also when people start their vacation trips. 

According to AAA, gas prices haven’t been this low over Memorial Day weekend since 2021. So what's the reason behind these low prices? 

"Saudi Arabia and the OPEC nations have increased production since January," said Skyler McKinley, AAA Regional Director of Public Affairs. "There's just more oil flooding into the market that increases the supply, which reduces the price that the commodity trades for on the markets, that leads for cheaper oil, which leads to cheaper gasoline."

But McKinley say falling gas prices may not be the good news they appear to be at first glance.

"As much as cheap gas prices are a relief to drivers, they are an indicator of some cause for alarm in the economy," McKinley said. "We know that, for example, when the COVID-19 pandemic hit, gas was really cheap. It's the cheapest I've seen in my career."

McKinley said there's a good chance the prices will go up again after this weekend.

"I do expect prices will rise into the summer. I think they'll rise heading to July 4th," he said. "But right now, remembering that Memorial Day is a springboard for the rest of summer prices, if that springboard is lower, generally you're going to jump a little lower too."

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