LOS ANGELES, Aug. 30 (UPI) -- Filling up the family car for a Labor Day getaway will cost Americans about 10 cents per gallon less this year than the same time a year ago, AAA reported Friday.
The average price of a gallon of regular unleaded was pegged at $1.406 Friday, down less than a penny from a month ago, but well below the year-ago national average of $1.504 per gallon.
"Thermometers have hit record highs and the stock market has had wild swings this summer; gas prices, on the other hand, have held steady at moderate levels," mused Justin McNaull, Public Affairs Manager for AAA Mid-Atlantic. "After spiking to record highs during the summers of 2000 and 2001, consistent gas prices have been a welcome arrival for motorists and it appears they will remain that way through the Labor Day holiday."
AAA has estimated that around 32.7 million Americans would travel more than 50 miles from home during the holiday weekend with 27.5 million planning to drive to their destinations. Last year, the Labor Day estimate was 33 million total travelers, of which 27.6 million planned to drive.
Pump prices have crept up in recent weeks as tensions between the United States and Iraq continue to simmer and drive crude prices up to nearly $30 per barrel, but with the end of summer in sight, the United States will have plenty of fuel on hand for the holiday and until stations begin switching to lower-priced winter formulation gasoline during the autumn months.
"Gas prices tend to track crude oil prices, so international decisions do impact the prices we pay at the gas pump," said McNaull. "With the end of summer.... the several-cent savings from using the less expensive product could balance out the higher prices of crude oil on the international market."
Crude futures on the New York Mercantile Exchange closed 6 cents higher for October at $28.98 per barrel in light pre-holiday trading. September gasoline futures climbed 10 points to 81.42 cents per gallon, however the U.S. Energy Information Administration reported that gasoline supplies had increased in the past week at a time when the amount of crude being run through the nation's refineries was down 200,000 barrels per day and gasoline production was off as well.
The future direction of crude and gasoline prices remained difficult to predict Friday due to conflicting market forces. The bulls were bolstered by the situation in the Persian Gulf and growing sentiment by OPEC members to leave crude production unchanged. Bearish sentiment comes from the traditional drop in gasoline demand at the end of the summer plus the recent sluggishness of the U.S. economy.
"Gasoline refiners are having their profits squeezed by lower demand for gas and higher costs for crude oil caused by fears of hostilities in the Middle East," said Carol Thorpe, spokeswoman for the Auto Club of Southern California. "The result has been a slight run-up in pump prices. Despite the higher prices, I don't think anyone planning a driving trip this weekend would cancel it because gasoline costs 2-3 cents more per gallon."
