Gas prices will likely remain highest since 2014 for July 4 weekend

National

(KLFY) — Gas prices are staying on the rise this summer travel season as another major travel weekend is just around the corner.

According to GasBuddy, many travelers will see gas prices above the $3 per gallon mark during the Independence Day weekend. Even with some relief from a recent small drop in prices, the national average price of gas on July 4 is expected to be $3.11 per gallon — 43%, or 93 cents, more than last year’s Covid-induced price of $2.18.

GasBuddy’s annual summer travel survey in May showed that 46% of Americans’ plans this summer were affected by high gas prices, which have been steadily on the climb recently.

Americans saw a spike in gas prices in early March, and again in mid-May due to increasing demand and the Colonial Pipeline shutdown.

“With the economic recovery from Covid continuing, gasoline demand has been very strong. Amidst lower oil production as oil companies struggle to raise output, gas prices have been higher this summer than in the past few years,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

“However, once market forces begin to balance, I expect prices to moderate this fall and over time, oil production will again rise, helping bring gas prices down to earth as soon as this fall, but the road may remain bumpy until the pandemic is behind us,” De Haan said.

According to GasBuddy’s annual summer travel survey, 74 percent of those planning to take a road trip will be taking at least two, further emphasizing the increased demand for gasoline. 

With Covid recovery continuing this summer, oil prices are likely to remain elevated, keeping gas prices above $3 per gallon for most of the summer. Labor Day is poised to feature $3+ prices as well, and should any hurricane disrupt supply chains, prices may rise even further.

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