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Gas Prices: Expert Tips to Save on Summer Travel Budget

Gas Prices: Everything You Need to Know for Memorial Day Weekend Travel

As we approach the Memorial Day weekend, many Americans are anticipating hitting the road for some much-needed travel and time with loved ones. This year, approximately 42 million Americans are planning to travel for the holiday weekend, representing a 6% increase from 2019 before the pandemic hit.

One of the major factors impacting travel this year is gas prices. With the recent decrease in gas prices, many individuals are looking forward to traveling without breaking the bank.

In this article, we will explore the reasons behind the lower gas prices and analyze factors that may impact gas prices and lead to possible predictions.

Memorial Day Weekend Travel Statistics

According to AAA data, approximately 42 million Americans are planning to travel at least 50 miles or more away from their homes this Memorial Day weekend. This represents a 6% increase from 2019 and the highest number since the start of the pandemic.

This increase in travel is due to the ease of restrictions in many states as the Covid-19 vaccine rollout continues. Moreover, this increase in travel is also driven by lower gas prices.

As the summer season draws near, individuals are eager to travel and enjoy the warmer weather without breaking the bank.

Reasons for Lower Gas Prices

The U.S. Energy Information Administration (EIA) has confirmed that global oil markets remain oversupplied, leading to lower gas prices. Additionally, the Russian invasion of Ukraine has not impacted global supply chains, thus reducing speculation in the market and subsequently lowering gas prices.

Factors Affecting Gas Prices

The cost of crude oil is the primary driver of gas prices. As crude oil prices fluctuate based on global supply and demand, gas prices will follow suit.

Refining costs, which include the processes of turning crude oil into gasoline, will also impact gas prices. Taxes, distribution costs, and marketing costs also play a significant role in the final price of gasoline.

Gas Prices Predictions

Currently, the OPEC+ nations are increasing supplies and are expected to maintain a $70-$75/bbl range through 2022, leading to expectations for stable gas prices. However, the Russian war on Ukraine remains a possibility and may cause a global supply shock that would lead to gas price hikes.

Cost of Gas in Memorial Day Weekend

According to Patrick De Haan, head of petroleum analysis at GasBuddy, the national average for gas prices this Memorial Day weekend will be $3.53 per gallon, the highest price in seven years. This increase in gas prices is driven by the increase in demand, leading to a surge in prices to previous levels before the pandemic started.

Gas Prices Forecast for the Summer

Despite the increase in gas prices for Memorial Day weekend, the national average for the summer is predicted to be lower than $4 per gallon. This is due to seasonal factors such as the completion of refinery maintenance and lower travel demand during the weekdays.

According to GasBuddy, this forecast would save Americans about $1.6 billion less on gasoline than in the summer of 2019. In conclusion, as we gear up for Memorial Day weekend travel, it is essential to understand the factors driving gas prices and how it may impact our travel expenses.

While recent decreased gas prices are driving travel, factors such as global supply chain disruptions may lead to gas prices fluctuation. As we brace for the potential surge in gas prices, it is important to keep in mind summer predictions and how they will impact our travel plans and expenses.

Gas Prices: Expert Opinion and Saving Tips for Summer Travel

As the summer travel season kicks off, many Americans are delighted to hit the road and enjoy warmer weather with family and friends. However, the recent increase in gas prices may interfere with these plans, leaving drivers to tighten their budget and adjust their travel plans.

In this article expansion, we will explore expert opinions on gas prices and the factors that drive these prices. Additionally, we will provide tips on how to save on gas and make the most out of your summer travels.

Determining Factors for Gas Prices

According to Ed Hirs, a UH Energy Fellow, the cost of crude oil and refining costs are significant factors that drive gas prices. As crude oil prices increase based on global supply and demand, gas prices will inevitably follow suit.

Additionally, seasonal blends of gas, required by states, may contribute to the increase in prices during the summer season.

Expert Opinion on Gas Prices

Currently, OPEC+ nations are increasing supplies, which should stabilize gas prices within the range of $70-$75 per barrel. However, the ongoing Russian war on Ukraine may lead to a global supply shock that may cause gas prices to fluctuate.

Patrick De Haan, the head of petroleum analysis at GasBuddy, predicts that the national average price of gas during summer will remain stable around $3.00 $3.15 per gallon. However, gas prices may spike again if unexpected refinery outages or hurricane season disrupts the supply chain.

Tips to Save on Gas

1. Buy Gas on the Best Days: Buying gas on specific days can save you some cash.

According to GasBuddy, the cheapest days to buy gas are Monday and Tuesday, while the most expensive days are Friday and Saturday.

2.

Drive Fuel-Efficiently: Accelerating and decelerating frequently and driving above 60 mph will consume more gas. Driving at a steady speed is essential in maximizing your fuel efficiency, leading you to save on gas.

3. Car Maintenance: Proper car maintenance is critical in saving on gas.

Clean air filters, properly inflated tires, and avoiding carrying excess weight in your car can improve fuel efficiency. 4.

Use a Gas Price App: Gas price applications such as GasBuddy and Waze allow users to find the cheapest gas prices nearby, ultimately helping you save on gas. In conclusion, the rise in gas prices may impact your summer travel budget plans.

It is essential to understand the factors driving gas prices and how they could affect your expenses. Following simple tips such as buying gas on specific days, driving fuel-efficiently, performing proper car maintenance, and using a gas price app can make a substantial difference in your gas expenses.

Overall, having a solid understanding of gas prices and following savvy tips can help you maximize your summer enjoyment and make the most out of your travel budget. In summary, as summer approaches, gas prices remain a significant factor to consider when planning your travel budget.

The OPEC+ nations are increasing supplies, leading to stable gas prices within the $70-$75 per barrel range. However, ongoing geopolitical tensions like the Russian war on Ukraine may lead to a global supply shock and raise gas prices.

To save on gas costs, consider buying gas on specific days, driving fuel-efficiently, performing proper car maintenance, and using a gas price app. These tips can make a substantial difference in your expenses and lead to a more enjoyable summer travel experience.

It is crucial to stay informed and follow savvy techniques to manage your budget and make the most out of your summer travels.

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