The American Automobile Association (AAA) has predicted that a historic 43.2 million Americans are set to hit the roads this Independence Day, a 4% surge from the previous peak of 41.5 million in 2019, according to the Wall Street Journal.
The anticipated increase in road travel comes as falling gas prices boost mobility among Americans, with the national average for a gallon of regular unleaded gas falling to $3.49, data from GasBuddy reveals.
This represents a substantial $1.34 reduction from last year’s figures and a 30% decline from the all-time high of $5.03 registered in mid-June of the previous year.
Furthermore, the drop in prices is even more pronounced in approximately 30 states where costs have dipped below the national average.
Analysts attribute the decline in gas prices to a corresponding slide in oil prices, propelled by concerns over a potential global recession impacting demand.
It’s noted that the price of U.S. crude has fallen approximately one-third compared to the same period in the previous year.
However, the current national average gas price is still 35% above the figure at the close of the Trump administration in 2019, with OPEC’s substantial production cuts posing a potential risk for further price increases.
Additionally, the Energy Information Administration reports that U.S. commercial crude inventories saw a larger than anticipated reduction in the week ending June 23.
In spite of refining capacity lagging behind pre-pandemic levels, some companies have ramped up production this year.
Specifically, Exxon Mobil and Valero Energy have reportedly added more capacity, potentially helping to stabilize gas prices moving forward.
