As we head into the Memorial Day weekend, gas prices are holding steady.
As of May 22, the nationwide average cost for a gallon of gasoline stands at $3.65, marking a $.12 cent decline from one month ago. Compared to last year’s price, it is over a dollar less, according to data from the United States Energy Information Administration. Average gas prices peaked in June of last year at $5.11.
Tom Kloza, OPIS Global Head of Energy Analysis said a lower demand for gas and use of the fuel were the cause of the lower average gas prices as the weekend approached.
There are still pockets of higher prices in the country however. The East Coast, Gulf Coast, and in the Midwest are all experiencing declining prices, which have led to the declines in the average price nationally. Prices currently average $3.48 on the East Coast, $3.12 on the Gulf Coast, and $3.45 in the Midwest.
Heading to the West Coast however, will lead to the highest prices nationwide, which currently register at $4.61 per gallon. Although less than last month, the decline over the month was smaller than in the rest of the country.
Head of petroleum analysis at GasBuddy, Patrick De Hann, said he is expecting $1.6 billion less will be spent on gas by Americans compared to one month prior.
De Haan said, “We’ve seen more states see prices climb than fall, which has been driven by oil’s volatility as debt ceiling discussions are ongoing. I think we’ll see prices rise slightly as we get closer to Memorial Day, especially if there are positive developments in the debt ceiling discussions in D.C., while pessimism could drive prices slightly lower.”
Andrew Gross, a spokesperson at AAA said that negotiations over the debt ceiling could “absolutely” be a factor in gas prices, however it was still “probably too soon” for the effects of it to be noticed by Americans.
Gross said, “Memorial Day is traditionally a really good indicator for what the rest of summer is going to look like. So if you have a robust travel period – like [AAA is] projecting – then that will probably mean that it’s going to be a really a robust summer for travel as well.”
Analysts expect the demand for travel to be high this Memorial Day, and to remain so throughout the summer season. Bob Pishue, an INRIX transportation analyst, said traveler numbers were predicted to return to pre-pandemic levels.
Although Pishue pointed out gas prices are still above their historical averages, Tom Kloza said he does not expect gas prices per gallon to follow the same steady decline they did last summer. However, he said that unless the hurricanes begin landing in July or August, he does not expect to see “apocalyptically high prices.”
