Gas prices near all-time highs May 20

CNN Business reported on May 20 that U.S. drivers were heading into Memorial Day weekend with gasoline prices near record levels, adding a new cost pressure to the start of the summer travel season. AAA said 45 million Americans are expected to travel at least 50 miles from home between May 21 and May 25, including 39.1 million by car. GasBuddy projected the national average price for gasoline would reach about $4.48 a gallon on Memorial Day, a sharp increase from a year earlier. ### How high are gas prices going into Memorial Day? GasBuddy projected a national average of $4.48 a gallon on Memorial Day, according to reporting published May 20 and the company’s summer travel forecast. That would leave prices near the highest Memorial Day levels on record, below only 2022, when holiday prices were higher after Russia’s invasion of Ukraine, according to CNN’s report citing GasBuddy data. (abc17news.com) The U.S. Energy Information Administration said the nationwide average retail gasoline price was $4.628 a gallon for the week ending May 18, in data released May 19. Federal Reserve Economic Data, which republishes the EIA series, shows that weekly U.S. gasoline prices have reached similar levels only a handful of times in the historical record. ### Why are prices elevated now? CNN reported that the war with Iran had destabilized global oil markets ahead of the holiday weekend. (cbs6albany.com) Local and regional reports published May 20 also tied higher pump prices to Middle East supply disruptions and the risk to shipping through the Strait of Hormuz. Patrick De Haan, GasBuddy’s head of petroleum analysis, said in the company’s summer outlook that prices this summer could be unusually volatile. (eia.gov) GasBuddy said its forecast for the season between Memorial Day and Labor Day averages $4.80 a gallon, with a possibility of record highs if the Strait of Hormuz remains closed for a significant part of the summer. (abc17news.com) ### How many people are still expected to drive? AAA said on May 11 that 39.1 million Americans are expected to travel by car over the Memorial Day holiday period, part of a record 45 million total travelers. The travel organization said the forecast covers trips of at least 50 miles from home between Thursday, May 21, and Monday, May 25. (cbs6albany.com) Stacey Barber, vice president of AAA Travel, said in the group’s release that Memorial Day marks the unofficial start of summer and remains a major travel weekend for U.S. households. AAA said gas prices are higher than last Memorial Day, even as some travelers who booked early found lower average airfares than a year ago. ### What does this mean for holiday spending? (newsroom.aaa.com) Memorial Day retail promotions are already underway at chains including Lowe’s, Amazon and Walmart, according to deal roundups published this week, but fuel remains a separate cost for households planning road trips and cookouts. Higher gasoline prices can raise the total cost of a holiday weekend even when grills and outdoor gear are discounted. (newsroom.aaa.com) USA Today network reporting in Kentucky said the national average had reached $4.56 a gallon on May 20, while state-level stories in Michigan and Delaware described fuel costs as a major factor in holiday travel budgets. Those local reports echoed the broader national picture of strong demand meeting higher pump prices. (abc17news.com) ### What should travelers watch next? AAA’s holiday travel period begins Thursday, May 21, and runs through Monday, May 25. The Energy Information Administration’s next scheduled gasoline price update is May 27, and GasBuddy has said its summer outlook will depend heavily on what happens in the Strait of Hormuz and broader oil-market disruptions. (newsroom.aaa.com) (courier-journal.com)