The high gas prices that millions of American families are facing this time of year are the worst in almost four years, with the national average of $4.85 per gallon near Memorial Day weekend. Persistent high gas prices could have a huge impact on how people travel over the summer, their vacation budgets and even their daily commuting, experts say.
New information from the American Automobile Association (AAA) shows prices have jumped over 52 cents in just the last month. California continues to be the hardest-hit state, with averages over $5.90 per gallon in many coastal areas and some inland locations nearing $6.20. Prices in the Midwest range from $4.60 to $5.10, and in the Southern states are around $4.40, but are still high in parts of the Midwest.
Have an Impact on Families and Road Trips
According to travel analysts, there will be a significant change in vacation planning in the USA this summer. While AAA predicts over 42 million will get closer to home or try new ways to get there, many are choosing to stick closer to home or other modes of transportation over the Memorial Day weekend.
Megan Thompson, an AAA spokesperson, said she is seeing an 18% jump in searches for destinations within a 300-mile radius compared with last year. Families are opting for trips to beaches in nearby states and closer-to-home national parks instead of cross-country drives.
The impact of vacations is not limited to the vacation period. With gas prices causing problems in local economies in California, rideshare drivers are reducing hours, and small business owners in tourism-dependent communities are concerned. With fuel prices reaching up to $100 a day, many gardeners, delivery drivers and construction workers are having to change their working day or look for work out of the way in order to get to their jobs.
The average household could be spending about $1.2 billion less per month if its national gas prices, which are not usually tied to those on the mainland, rose by 10 cents, according to economists at Goldman Sachs. Dining out, entertainment, and retail spending may be limited during the summer months as prices remain high.
Air Industry and Alternative Transport Services See Gains
Rising road transport costs are driving increased demand for domestic air transport. Major carriers said their short-haul (“less than 600 miles”) bookings rose 12% from the previous year. Amtrak has also been seeing strong demand for intercity travel, with several lines adding extra cars to meet it.
Successfully, hybrid and electric vehicle owners are doing better. States with higher EV adoption, like California and Washington, say they don’t experience as much of a burden on household budgets. Networks of charging stations have grown quickly, but there are a few potential infrastructure issues for long-distance travellers in rural areas.
What Is Responsible for This Rise?
Global supply changes, refinery maintenance, and seasonal demand before the busier summer driving season are cited as reasons. Although the price of crude oil has fallen slightly over the past few weeks, retail gas prices appear to lag behind wholesale prices.
Consumers are advising drivers to take action to save money. People are advised to use fuel comparison apps, ensure good tyre pressure, avoid aggressive acceleration, and merge errands. In addition, many gas stations are providing cash-or-l loyalty bonuses.
Long-Term Outlook and Consumer Advice
Energy experts predict that prices will remain high until early summer, when they may begin to decline. But we do not know what will happen in the world markets, as they are uncertain.
Experts recommend making early bookings for hotels and other summer activities to secure lower costs for families still planning trips this summer. Fuel tax relief is being offered by some states, carpooling programs are being pushed by others, and the use of public transport is being promoted.
But, even with the problems, many Americans are still hopeful that they will be able to enjoy the season. Sarah Mitchell from Ohio, travelling with her two children, said that they had changed their plans to move to a lake cabin, instead of crossing the country. “It’ll be a fantastic summer – just smarter this time round.”
With travel season in the United States fast approaching, high gas prices are a reminder of the interdependence of energy costs and daily American life. Whether it’s reducing car travel, using more air travel, or coming up with creative ways to stay close to home, this summer will be one of careful spending and innovative vacation ideas.
