Low gas prices, higher miles expected

Low gas prices, higher miles expected

Nationally, July 4 gas prices could drop below 2005 levels - the first time prices were ever above $2 for the Independence Day weekend.

Elevated gasoline supplies and weak demand have kept a lid on gas prices heading into the busy summer driving season. Over the last decade, the national average has been as much as $1.04 per gallon higher on July 4 than New Year's Day while the average year sees prices 47 cents higher on the holiday.

GasBuddy senior petroleum analyst Dan McTeague said the prices are a welcome relief after years of summer price increases.

The national average price per gallon of unleaded gas started sliding in May and continued into last week. In San Diego, the average price is $2.896, down 4.3 cents over the past seven days, the AAA says.

Travelers bound for San Antonio can fill up at the rate of $1.97 a gallon, while Austin and Dallas are averaging about $2.04 a gallon, according to GasBuddy.com.

But gas prices are not at an all-time low in every state or region.

More than a million Virginia residents are expected to travel to celebrate July Fourth. The release states the 10-year average is $3.14 per gallon.

McKnight also said that because all crude and refined products are priced in USA dollars, recent strength in the loonie will buffer any increase with WTI/NY Harbor gas futures prices. He said this weekend will "put to rest the myth" that gas prices always go up for the holidays.

That's more than meeting the demand at a time when, typically, gas prices are expected to rise.

Despite the historically low fuel prices this holiday weekend, take note that the price spread in any given city on July 4 will be at historic highs.



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