As gas prices rise,
travel plans may decline, a survey suggests.
With gas prices moving closer to the dreaded $3-a-gallon mark, a new GasBuddy survey suggests drivers might curtail summer driving because of higher fuel costs.
“High gas prices are starting to eat away at the travel plans of many, and the number will likely rise as gasoline prices appear poised to continue moving higher in the weeks ahead,” said GasBuddy analyst Patrick DeHaan. “It’s no shock as we continue to see price hikes in 49 of the nation’s 50 states in the last week. And what rings true is that with such a big jump in prices, motorists are absolutely becoming more price conscious as they make plans this summer.”
The national average for a gallon of regular unleaded fuel hit $2.92 a gallon Monday, even though prices in the Orlando area were only $2.76 a gallon, according to AAA Daily Fuel Gauge. Oil prices have been above $70 a barrel in recent weeks, but some say it could go as high as $90, according to AAA and the Oil Price Information Service.
At $90 a barrel, gas at the pump would climb another 50 cents a gallon, AAA reported.
That could have a big impact in Central Florida, the nation’s top tourist destination in 2017, according to Visit Orlando.
Even though gas prices are lower in Florida than in much of the nation, motorists are still paying 53 cents more a gallon than they did a year ago.
The U.S. Energy Information Administration has said it expects prices to hit about $2.97 a gallon this summer, peaking in June. But prices should say as high as $2.82 a gallon all the way through September.
Travel group AAA said that means families can expect to pay about $200 more for fuel this summer than they did last year.
According to GasBuddy’s survey, about 31 percent of Americans plan to make a 500-mile driving trip this summer (round trip), compared with 56 percent of people who said the same last year. About 39 percent of people said high gas prices were affecting summer driving decisions, and 24 percent fewer people were doing significant travel at all this summer.
Even without tensions in the Middle East, oil prices are higher because global demand is growing and worldwide reserves are shrinking. Excess oil refining is at the lowest point since 2016, according to the energy agency.
However, AAA said its Memorial Day travel forecast shows people still want to get out and relax this summer.
“Current fundamentals will likely lead gas prices higher before the Memorial Day weekend,” said a statement from AAA spokesman Mark Jenkins. “Regardless of higher prices at the pump, AAA still forecasts the most holiday road trippers in more than a dozen years. Those with smaller gasoline budgets will find other ways to finance their travel plans, like cutting back on discretionary expenses like shopping or dining out.”