24% Of Americans Will Drive Less This Summer Due To Surging Gas Prices

With the national average gas price continuing its trudge toward $3 a barrel, pushed by rising crude oil prices, GasBuddy is reporting that more Americans are planning stay-cations instead of traveling this summer as worries about rising gas prices intensify.

According to the annual survey, only 58% of respondents said they would take a trip this summer, a 24% decrease from last year. That's the lowest number since the summer of 2014, when crude oil prices were above $100 a barrel.

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Asked about their reasons for delaying their plans, 39% blamed rising gas prices, compared with 19% in 2017.

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As one might expect, gas prices in the US are at their highest level in three-and-a-half years, and it's likely their impact will be felt beyond Memorial Day.

"With refineries now well positioned for the summer months, we may see some relief in mid-June, but expect this summer to remain the priciest since 2014 with a strong likelihood of the national average hitting the psychological $3 per gallon barrier sometime this summer should we see any unexpected outages or geopolitical tensions flare," said Patrick DeHaan, head of petroleum analysis at GasBuddy.

However, as Ken Fisher writes in a USAToday column entitled "Why rising gas prices won't last, even after Trump ends Iran nuclear deal", any oil price shocks probably won't last. That's because US production is rising, expected to reach nearly 12 million barrels a day next year.

Trips

Compared to US production, the 2.5 million barrels a day exported by Iran don't really matter as much to the broader market, meaning that the impact of price cuts likely won't last. Still, memories of the 1970s oil shocks that led to gas lines and stagflation loom large in the American imagination, even if the entirety of the generation that makes up a plurality of the US work force has no direct knowledge of these events (given that the oldest millennials were born in the early 1980s).

Trips

Though that's hardly any consolation to residents in California and other high-tax states where the average gas price has already surmounted $4 a gallon.

Comments

swmnguy TBT or not TBT Tue, 05/22/2018 - 20:15 Permalink

These stories never make any sense.  Where I live, gas is up maybe 30 cents a gallon.  Maybe.  Where were these people planning to drive, Tierra Del Fuego?  Sure, an additional $3.00 or so per tank of gas is kind of a bummer.  $6.00 if you drive a big vehicle.

I drive a small car suited to the fact that I live in a city.  I buy a tank of gas every 3 weeks or so, need it or not, and have an 11-gallon tank.  The extra $3.30 isn't changing any of my plans.  If I were driving a couple thousand miles, we might be talking an additional $25?

I don't despise $25 as not being worth my attention.  But people really change all their plans over $25?

And commuters.  Even if you drive a gas hog and live 25 miles from your job, which I guess people do, we're talking about an additional $200 at most--most!--over the course of a year.  Nobody wants to spend more money, but really, $18 a month or so is going to kill you, and you have a job?

Silly articles.  

In reply to by TBT or not TBT

Simplifiedfrisbee Blazing in BC Tue, 05/22/2018 - 19:47 Permalink

Which raises the question, how are we keeping America great when the stupid red hats can’t even fucking afford to drive to the National Park and enjoy a picnic? 

 

As long as you’re mad and hateful to other races it’s all to the good right trump whores? 

 

Have you caught on to the orange charlatan yet? He lies about how awesome he is then fucks everything in his favor. 

 

Whores love pimps! Red hat for the win!

 

 

In reply to by Blazing in BC

Lost in translation Tue, 05/22/2018 - 19:57 Permalink

They’re a’howlin’ about this on the John & Ken show today: “Josh Newman did this to you!  Josh Newman ruined your vacation!”

I don’t have any sympathy.

People in L.A. buy the biggest gas hog SUV that Wells Fargo can afford, the mileage be damned.  They then proceed to relive scenes from The Fast and the Furious in it on the jam-packed SoCal freeways.

At this point, I welcome economic pain - the more the better.

People will not change their ways until their ways, hurt.

#Bring_it

New_Meat Tue, 05/22/2018 - 19:59 Permalink

so if 24% will drive less, that means that 76% will drive moar?

And gas in the Empire State is >$5.00/gallon.  Here, even in the Commonwealth, gas is about $3.00.

Sounds like the New Yawkaz gonna drive less.  and how'bout them californicators?

GeezerGeek Old Codger Tue, 05/22/2018 - 21:07 Permalink

Is that in USD or AUD? And is that an Imperial gallon or a US gallon? You may be comparing prices using larger quantities of gas and shrunken dollars.

I can remember buying five gallons of gasoline for a dollar. I can remember occasionally using a real silver dollar, too, to buy that much gas. Damn, I can still buy five gallons of gas for the value of a silver dollar. Damn those bastards and their paper money!

In reply to by Old Codger

hanekhw Tue, 05/22/2018 - 20:38 Permalink

Price affects demand levels. People HAVE less disposable income even after tax cuts because municipalities and states are constantly raising taxes and fees and the cost of housing is spiraling out of control. Soooooooo. Less trips, scheduled shopping and the elimination of 'runs' for one or two items.

44_shooter Tue, 05/22/2018 - 20:41 Permalink

"With the national average gas price continuing its trudge toward $3 a barrel..."

Let me know where I can buy gas for $3 a barrel... does anyone proof read anymore?

Northern Lights Tue, 05/22/2018 - 21:19 Permalink

It doesn't quite work like this up here in Ontario, Canada.  If gas prices go up here, people cut back on stuff like swimming lessons for the kids, piano lessons, flying somewhere out of country for a trip, eating out at restaurants, etc etc.  As a frequent weekly traveller between Toronto and Niagara Falls, I can say this, the road traffic has gotten a hell of a lot heavier come the weekend.  If you're not out on the road by 8am Saturday morning, you're looking at a three+ hour car ride in what normally shouldn't take you more than 1.5 hours.  It's so bad now, that when I go up, I'll go Friday night after 10pm, and on my return trip, will leave Sunday night after 9pm.  Too many fucking daytrip tourists going to Niagara now.  They can't afford $2000 for a trip to Cancun, but they can afford $80 for a tank of gas and the wife does a picnic basket and everyone goes and hangs out at the falls or the park for a picnic.

JelloBeyonce Tue, 05/22/2018 - 21:47 Permalink

Across the country, the Trump Organization is suing local governments, claiming it owes much less in property taxes than government assessors say because its properties are worth much less than they’ve been valued at. The Trump Organization says the president’s property holdings are worth far less than he has proclaimed.

Since becoming president, Trump’s companies have filed at least nine new lawsuits against municipalities arguing for lower tax bills.
At stake is millions of dollars that communities use to fund roads, schools and police departments.

And yet the mindless masses continue to praise the "Myth of the Good King".

Remember when Trump declared that his not paying taxes made him "smart" during his debate with Clinton 2.0?

"When The New York Times showed that Donald Trump may have used a legal
loophole to avoid paying federal income taxes for years, many people expected the
self-described billionaire to be embarrassed. Instead, in a debate with Hillary
Clinton, Donald Trump said...

DONALD TRUMP: That makes me smart."

http://www.npr.org/templates/transcript/transcript.php?storyId=499213698