As the July Fourth holiday approaches, travelers hitting the road can expect a pleasant surprise at the pump. According to AAA and GasBuddy, the average price for a gallon of unleaded gas is
currently around $3.50, which is more than $1 lower than it was a year ago. This decline in gas prices is expected to incentivize road trips over the holiday weekend, with a projected record-breaking 50.7 million people traveling within the U.S.
The national average price for a gallon of unleaded gas has been steadily decreasing. It dropped by about 6 cents compared to a week ago, and it is now 3 to 4 cents lower than a month ago. On July 4, gas prices are anticipated to be approximately $1.30 per gallon cheaper than the same time last year, when prices were at record highs.
Patrick De Haan, GasBuddy's head of petroleum analysis, predicts that the national average gas price may continue to decline but could stall just below the $3.49 mark due to recent fluctuations in oil and wholesale gasoline prices.
Last year, inflation drove gas prices to unprecedented levels during the spring, reaching over $5 per gallon by June. However, this year, gas prices have remained relatively stable at around $3.50 to $3.60, contributing to the increased travel interest during the five-day holiday period. AAA reports that the national average price for a gallon of unleaded gas is currently $3.54, 4 cents lower than a month ago and $1.32 lower than a year ago.
AAA forecasts a record-setting number of travelers for the Fourth of July weekend, with an estimated 50.7 million people traveling more than 50 miles from home. The majority of travelers, around 43.2 million, will be taking road trips, marking a 4% increase compared to the previous record set in 2019.
Despite some price increases and limited inventory, consumers are showing strong travel demand this summer. Many travelers heeded AAA's advice to book early, further confirming the robust interest in travel.
However, GasBuddy's Patrick De Haan notes that while there is an increase in planned road trips compared to last year, other economic factors and rising inflationary pressures may impact travel decisions. Higher costs for accommodations, restaurants, and labor contribute to the hesitancy among some travelers. Although the holiday weekend is expected to be busy, De Haan doesn't anticipate it to be a record-setting one. Photo by Ck1media, Wikimedia commons.