Road trips this Fourth of July are shaping up to be more affordable for drivers across the country, as gas prices remain relatively stable compared to previous years. According to GasBuddy, the national average price for regular gas is projected to be $3.49 per gallon on Independence Day, just a penny lower than last year and significantly down from $4.79 two years ago during the aftermath of the Russia-Ukraine conflict.
When adjusted for inflation, current gas prices in the US are nearly on par with those from July 2018, as reported by federal data. Some regions are experiencing even more significant savings, with drivers in Washington seeing a 71-cent decrease from last year, followed by Oregon at 60 cents, Utah at 44 cents, and Colorado at 42 cents.
Despite the anticipated surge in fuel demand, with a record number of nearly 61 million people expected to hit the roads this Fourth of July, gas prices have remained relatively low. This increase in travel activity represents a 5% rise from last year and a 10% jump from pre-pandemic levels in July 2019.
However, the current drop in gas prices may be short-lived, as the looming hurricane season poses a potential threat to oil prices. Hurricane Beryl, the earliest Category 5 storm on record, has already contributed to pushing US oil prices above $84 a barrel, marking the first time since late April. While Hurricane Beryl is not an immediate danger to US energy infrastructure, traders are closely monitoring the situation, anticipating that an active 2024 hurricane season could impact oil production and refinery operations in the US.
