“Kicking Into High Gear” – A Record 42 Million Drivers Will Hit America's Highways On July 4th Weekend

“Kicking Into High Gear” – A Record 42 Million Drivers Will Hit America’s Highways On July 4th Weekend

Despite emerging signs of gasoline demand destruction, an exception could be made this weekend as a new forecast indicates that a record number of drivers are expected to hit America’s highways this Independence Day weekend despite minimal relief at the pump. 

“The biggest surprisecar travel – will set a new record despite historically high gas prices with 42 million people hitting the road” this weekend, auto club AAA said in a new report. This means the number of drivers on the road would exceed 2019 (pre-COVID) by half a million. 

“The volume of travelers we expect to see over Independence Day is a definite sign that summer travel is kicking into high gear,” said Paula Twidale, senior vice president, AAA Travel.

Twidale added: “Earlier this year, we started seeing the demand for travel increase and it’s not tapering off. People are ready for a break and despite things costing more, they are finding ways to still take that much-needed vacation.”

The emergence of gasoline demand destruction and threats of recession has brought down the national average price of regular gas (octane 87) by about 3% from the record high of $5.016 a gallon to $4.857 in the last few weeks. That’s a 16-cent saving per gallon — factor in the average fuel tank size for a US automobile is about 14 gallons — drivers will save a paltry $2.24 every time they fill up. 

We’re surprised the White House didn’t tout these savings ahead of the holiday weekend as they did last year. 

The crux of the problem and why gas, diesel, and jet fuel prices remain elevated is US refining capacity is a significant bottleneck as no new capacity is coming online amid robust demand. 

Tyler Durden
Fri, 07/01/2022 – 21:05

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