Gas Prices Steady for Memorial Day Travelers
Gas prices are holding steady for the nearly 40 million Americans expected to hit the road this Memorial Day weekend. According to the American Automobile Association (AAA), the average cost of a gallon of regular unleaded gasoline in the United States was just $3.18, making it the lowest it has been for Memorial Day weekend since 2021. Back then, the average price was slightly lower at $3.04.
Year-on-Year Comparisons
This year’s gas prices contrast sharply with previous years. Last Memorial Day, the national average was a hefty $3.59 per gallon, and in 2022, it peaked even higher at $4.60. The 2023 numbers reflect a significant drop that many consumers are likely to appreciate, especially with more Americans planning to travel this holiday.
Increasing Travel Expectations
AAA estimates that about 39.4 million Americans will be taking to the roads this Memorial Day weekend, marking an increase of approximately 1 million travelers compared to 2024, which is about a 3% rise. This surge is also notable when compared to 2019, where travel numbers were 4.6% lower.
Economic Bright Spot
The current low gas prices provide a glimmer of hope for the U.S. economy, which has faced challenges amid political and economic uncertainties, including President Donald Trump’s trade war and a general decline in consumer sentiment. Gas prices have notably avoided the usual seasonal spikes that often accompany the summer travel season, giving consumers more confidence to travel.
Future Trends in Gas Prices
While current gas prices are low, AAA warns that demand is expected to rise, potentially leading to slight increases at the pump. Historically, gas prices tend to peak during the summer months and decline after the back-to-school season rolls in. According to AAA’s analysis from May 12, the current stability of gas prices might not last as travel increases.
Historical Context
Gas prices this Memorial Day weekend are near historic lows. For instance, in 2003, gas was priced significantly lower at $1.50 per gallon leading into the holiday—a price that, adjusted for inflation, translates to about $2.65 today. Notably, Memorial Day gas prices have not dipped below the $2 mark since 2020, which was during the pandemic when the average dropped to $1.87.
Political Factors Affecting Gas Prices
White House Press Secretary Karoline Leavitt pointed out that gas prices are expected to continue their decline thanks to the president’s energy policies. Trump has aggressively focused on lowering energy prices by promoting domestic production, reducing regulatory barriers, and urging OPEC to increase its supply. Since the beginning of his second term in January, U.S. oil prices have plummeted approximately 20%.
OPEC’s Role in Pricing Dynamics
The notable decrease in oil prices has, in part, been driven by Saudi Arabia and OPEC increasing production—a strategy that Trump publicly advocated for shortly after taking office during a speech at the World Economic Forum in Davos, Switzerland. Bob McNally, president of Rapidan Energy Group, noted that the falling crude prices are closely tied to economic pessimism and the increased output from OPEC nations.
Preemptive Moves on Tariffs
Earlier in April, oil prices had crashed to their lowest levels in four years amid recession fears exacerbated by Trump’s high tariffs. However, a significant recovery occurred after he paused most of those tariffs. Additionally, the decision not to pursue the previous administration’s proposed sanctions targeting Russia’s energy sector has also contributed to the current environment of lower oil prices.
As millions of Americans prepare for their Memorial Day weekend journeys, the interplay of gas prices, travel trends, and political decisions reflects a complex landscape that consumers will navigate.
