Gasoline Prices Ahead of Memorial Day Are 1% Higher Than a Year Ago

• Gas prices are down slightly from recent highs but still above 2023's Memorial Day prices.
• A record number of Americans plan road trips this summer, with many traveling long distances.
• AAA forecasts record-breaking travel numbers over the Memorial Day weekend despite mid-range gas prices.

The average retail price of a gallon of regular gasoline in the United States was $3.58 on the Monday before Memorial Day, which was 1% higher than last year’s pre-Memorial Day gas price, the U.S. Energy Information Administration (EIA) said on Thursday.

Over the past five weeks, Middle East tensions have eased, while U.S. refinery activity has increased after the end of seasonal maintenance, contributing to a 2% decline in average retail gasoline prices, the administration noted.  

A near-record number of Americans plan road trips this summer as gasoline prices continue to drop ahead of Memorial Day weekend, the start to summer travel, the 2024 Summer Travel Survey of fuel savings platform GasBuddy showed on Tuesday.

A total of 76% of Americans plan to take at least one road trip between Memorial Day and Labor Day weekends, the GasBuddy survey showed. That’s 18% higher than last year. The average American traveler has two road trips planned, with many venturing far – 49% expect to drive 5 or more hours to reach their destination, according to the survey.

GasBuddy expects the national average price of gasoline will hold in the mid-$3 per gallon range for much of the summer, with potentially tens of thousands of stations falling below $3 per gallon throughout the next several months. GasBuddy forecasts that gas prices will average $3.58 per gallon nationally between Memorial Day and Labor Day.

AAA estimates showed last week that road trips during Memorial Day weekend are to set hit a record-high—38.4 million people are set to travel by car over Memorial Day weekend, the highest number for that holiday since AAA began tracking in 2000.

AAA expects 43.8 million Americans to head 50 miles or more from home by all means of transportation over the Memorial Day holiday travel period between Thursday, May 23, and Monday, May 27, 2024. This would be the highest in nearly two decades, AAA said.  

By Tsvetana Paraskova for Oilprice.com

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