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Memphis drivers could find gas prices at or below $3/gallon headed into Labor Day weekend

Prices continue to fall throughout the summer heading into Labor Day after the Memphis area dealt with record-high average gas prices in June.

MEMPHIS, Tenn. — Good news Mid-South drivers: gas prices continue to fall as we head into the Labor Day weekend with the fall season on the horizon.

According to AAA, the average price for a gallon of regular unleaded in Memphis stood at $3.48 Friday. That's down from $3.53 a week ago and $3.87 a month ago.

Some stations near Memphis in DeSoto County, Mississippi, such as the Citgo on Church Rd. West in Southaven reported gas at $3.00 a gallon, and the BP on Nail Rd. in Horn Lake reported $2.99 a gallon Friday. That is close to the average of $2.93 a gallon one year ago in Memphis.

"The basic trends are, there has been a weakening of demand. OK, there has been a stabilization of the Ukraine markets. OK, so it's not getting a lot worse and everyone was afraid it would," said Dr. John Gnuschke, an economist in Memphis.

Dr. Gnuschke told ABC24 in early July he expected gas prices to fall closer to $3 a gallon by the start of fall, a prediction that's proving to be correct.

"There's been some response in terms of producers. So, producers are doing as much as they can and making as much money as they can, which is exactly what we should expect them to do," Dr. Gnuschke said. "Petroleum prices always run in cycles and this decline has gone from $5.50 to $4.50 to $3.50 and now we are expecting maybe $2.50 by the middle of October."

The falling gas prices in the Mid-South are a welcome relief, considering new record highs were set in June in Memphis, including $4.65 a gallon June 14th.

"People are going to see it in their budgets, OK. They are going to have more money for food, more money for goods and services that they might normally need to buy," Dr. Gnuschke added.

Mid-South drivers expressed their relief about the falling gas prices, especially with everything else more expensive these days.

"Rent is going up, groceries, so at least you know at the pump, you can get some relief out of the three," Paul Davis said.

"Working all the time, gas prices is a major thing. I would like for it to go down, be cheaper so I can get to work, make more money, provide for my family a little better," Donny Bennett added.

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