| Advertisement |
WASHINGTON, May 27 (UPI) -- Even though prices at the pump have been on a steady rise, the U.S. government said Memorial Day travelers are saving big money this time around. Motor club AAA reports a national average retail price for a gallon of regular unleaded gasoline at $2.32 for Friday, about 5 cents per gallon more than one week ago. Gasoline prices move more or less in line with crude oil prices, which have rallied in recent sessions because of demand strains.
Advertisement
AAA said more than 38 million people are expected to travel during the three-day holiday weekend in the United States, the highest number for Memorial Day since 2005, and nearly 90 percent of them will get to their destinations in a passenger vehicle.
Analysis from the U.S. Energy Information Administration finds that, even with demand at a seasonal high, the price at the pump is at its lowest level for this time of year since 2009.
"Lower gasoline prices reflect lower crude oil prices, with the spot price of North Sea Brent crude $19 per barrel lower than at the same time last year, despite a price increase of more than $17 per barrel since the last week of January," EIA said.
The American Petroleum Institute, which advocates on behalf of the nation's oil and gas sector, said cheaper gas prices are a reflection of the success in U.S. shale oil basins, which means more reliable sources of petroleum products are available for consumers.
"As we head into Memorial Day weekend and the traditional start of the summer driving season, motorists have continued to reap the benefits of America's energy renaissance with relief at the pump," API Chief Economist Erica Bowman said in a statement.
Prices vary by region, with Midwest markets seeing sharp spikes because of pipeline and refinery issues. Drivers along the southern U.S. coast, meanwhile, have some of the lower prices because of a relatively lower share of national demand for gasoline.
The national average price for a gallon of gasoline on this date last year was $2.74.
