Cheapest gas prices in 10 years welcome holiday weekend travelers

Jul 01, 2017, 00:43
Cheapest gas prices in 10 years welcome holiday weekend travelers

Travelers headed to portions of the Texas coast may encounter the highest prices in the state, according to AAA, which reports drivers in Galveston are paying the most on average at $2.07, while drivers in Amarillo are paying the least at $1.89 a gallon. Average retail gasoline prices in Wyoming have fallen 6.2 cents per gallon in the past week, averaging $2.27/g yesterday.

This is the first time in Gasbuddy's 17-year history that prices will be lower on July 4 than they were on New Year's Day.

Meanwhile, AAA Colorado estimates 760,000 state residents will travel at least 50 miles or more over the holiday weekend - a record total and 3 percent higher than a year ago.

The majority of them will be driving 50 miles or more during this extra long holiday weekend starting Friday and going through the 4th on Tuesday.

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Consumers across the country can expect to pay an average of 104.4 cents per litre - which works out to 13 cents below the 10-year average - according to GasBuddy.

"Record refinery rates, high gasoline and crude inventory, and less-than-favorable demand this year are among the contributing factors causing the downward price trend", the AAA Weekend Gas Watch states.

Although average gas prices are at historic lows, the price variance - "spread" in industry parlance - in gas prices in any given city on July 4 will be at historic highs. "Perhaps we can finally get rid of the myth that gas prices go up for the holiday", GasBuddy senior petroleum analyst Patrick DeHaan said in the release. This means there is a higher chance motorists will overpay at the pump over the holiday weekend.

It's not just cheap gas prices that are fueling that demand, AAA says. That would be 2.9 percent increase over figures from last year's Independence Day weekend. Hotel rates are unchanged compared with past year, AAA said.

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