Gas Prices Increased Amid Memorial Day Holiday Season, Analysts Hints To Reduce Soon
AAA report mentions that travelers around 38 million intends to go for a road trip during this holiday season and has increased to 4 percent compared to the previous year.
Currently, the gas is more expensive than other Memorial Day from 2014. The US economy is strong and has led to excessive demand for gasoline. The unemployment rate is low to nearly 50 years, and numerous people are heading towards vacations.
Now due to an increase in the gas price, the road trips will be creating a big hole in your pocket, and many drivers believe that taking a road trip will be expensive.
The amount drivers are paying for buying gas in Washington State is the highest. The AAA Washington reports of Thursday mention that the minimum cost of a gallon of regular gasoline was around $3.55, this is nearly 11 percent than the previous year. However, the gas prices in some parts of British Columbia are even higher than this.
Drivers will notice much higher gas prices in Western states of the country.
Chief oil analyst of the Oil Price Information Service says that the differences in oil prices across the states are due to changing refining capacity.
Every-day, around 2.5 million barrels of refining capacity has been created in the US for over 20 years, and all are located at the east of Rockies. While, the western US has not received any new refining capacity. Due to strong environmental regulations in Washington State and California has resulted in the banning of new refineries, and this is because the population of the west part is continuously increasing.
Meanwhile, most of the western refineries are closed due to maintenance issues aiming towards the holiday season.
Jim Philips, a traveler, says that whenever he crosses the border from British Columbia to Whatcom County, he makes a halt at a gas station in Blaine to fill up his tank. The gas station that he stopped at on Thursday was selling a gallon of regular gasoline for $4.00 and the costliest one in Blaine.
The AAA Washington data says that currently, in the west coast region the gas prices at the pump are very high across the US, in a time when most of the drivers are getting on the road for the holiday season.
The oil prices have reduced due to global trade war taking between the two countries. The wholesale gasoline costs have decreased in this week, but they still need to hit the pump, Kloza stated.
According to Kloza, there could be some help for drivers in the next week, but the gas prices will surge more in the summer season. There are various reasons, forcing gas prices to increase in recent days.
Analysts also assume that the drivers will notice a 5 to 10 percent drop in the next week due to weak market value, and several refineries will be back from its maintenance problems.
GasBuddy’s Senior Petroleum Analyst, Dan McTeague said not this weekend but definitely in the coming week, its already on its way, you can save it. One of the drivers, Norman Pallard requests people to fill up their tank before you cross the border if considering traveling to British Columbia for the holiday weekend Memorial Day.