U.S. gas prices bounced to a fresh record-high again Sunday, touching an all-time peak of $4.61 per gallon. That is more than 50 percent higher than the cost of a gallon a year ago.
The pump price surge came as tens of thousands of Memorial Day weekend holiday makers hit the road to enjoy some time with family and friends after two years of coronavirus uncertainty.
The Daily Mail reports experts expect a fresh set of numbers will likely surpass the $6 mark by the end of the summer – as pump costs in West Coast cities such as Los Angeles and San Francisco already tipped that mark earlier this month.
Last week, the price of a gallon in each of the 50 states surpassed the $4 marker, impacting travel plans for many.
By the July 4 holiday, more states could see average prices above $5 a gallon, analysts say, driven by the inflation wracking the entire economy under President Joe Biden.
“I don’t think as many people are going to hit the road, and if they do, I think a good portion are going to be staying close to home,” Patrick De Haan, head of petroleum analysis at GasBuddy, told CNBC.
“They’re definitely should be a noticeable bump, but my impression is people are not driving as far. The concern is high prices that are keeping people a little closer. There’s also work-from-home that changed things. There’s a strong subset of people that can basically work from the road all the time.”
Vehicles drive on the Capital Beltway, Interstate 495 ahead of the Memorial Day weekend, May 27, 2022 in McLean, Virginia. Despite record high gas prices AAA predicts Memorial Day car travel to be the busiest since 2019 with over 34 million Americans traveling greater than 50 miles. (Kevin Dietsch/Getty)
AAA expects 39.2 million people in total will travel 50 miles or more this weekend, an increase of 8.3 percent over last year. Of that, there are expected to be 4.6 percent more drivers on the road during the three-day weekend, but that number is still down 7.2 percent from 2019, according to the report.
Across the U.S., prices vary widely, with a high $6.07 per gallon average in California and $4.13 per gallon in Georgia.
As high prices impact consumers, analysts say they will not fill up their vehicles as often, and that reduced demand could act to curb the pace of further price increases.