Gas prices will fall by up to 20c per gallon by July 4, says GasBuddy – but it will only be temporary
Gas prices are forecast to fall by up to 20 cents per gallon before the July 4 holiday, but analysts claim relief at the pump is only temporary.
Analysis of fuel price tracks GasBuddy shows that a gallon of gas costs $ 4.91 per gallon as of June 25th.
It is down from an all-time high of $ 5.03 on June 13, and GasBuddy said they expect the price to continue to fall – but only temporarily.
Despite the predicted decline, the cause is not explained, fuel Price Tracker GasBuddy says Americans will pay the highest gas prices on Independence Day ever.
GasBuddy experts also warn that a “super increase” in fuel prices is likely to occur later in the summer because “market volatility remains high.”
The company’s latest forecast comes when President Joe Biden called on Congress to suspend the federal gas tax until September – a plan that Republicans oppose and even some Democrats reject, expressing concern that the savings could end up in the pockets of oil companies instead of consumers. .
Biden also called on oil companies to cut gas costs, claiming the nation is in a “war” due to Putin’s invasion of Ukraine.
However, Federal Reserve leader Jerome Powell criticized the remark, claiming that Russia’s invasion of Ukraine was not the main driver of rising prices.
This GasBuddy price tracker shows that prices have started to fall again since they reached a record high level of 5.03 dollars on 13 June
Gas prices are forecast to fall by up to 20 cents per gallon before the July 4 holiday, but analysts claim relief at the pump is only temporary. A photo taken on June 22 shows gas prices listed at over $ 7 per gallon in Los Angeles, California
After culminating in a national average fuel price of $ 5 per gallon just weeks ago, GasBuddy predicts that US gas prices will fall 10 to 20 cents per gallon by July 4th.
“It’s been a scorching summer at the pump with record prices set in all states,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
“Motorists should know that even though we may see little relief today, there is still a risk that prices may rise at a moment’s notice and set new records again.”
De Haan noted how several external factors could quickly affect the price of fuel in America.
“Although we may see relief as we approach July 4, and potentially after, market volatility remains high,” he explained. “We could still see a super increase in gas prices later this summer, should a hurricane threaten Gulf Coast oil refineries or oil platforms.”
It is unclear what led to GasBuddy’s prediction of a drop of up to 20 cents per gallon, as the company did not immediately respond to DailyMail.com’s request for clarification.
However, prices at the pump have been declining slightly since the peak on 11 June.
Regardless Of the astronomical fuel prices, more than 58 percent of Americans still plan to take a road trip this summer.
33 percent of Americans surveyed in a recent GasBuddy survey also revealed that they planned their road trip specifically during the July 4th holiday weekend.
“While we may see a brief relief here and there, the high prices do not seem to be holding back many Americans from going down the road with the economy completely reopened,” De Haan said.
Independence Day weekend will mark this summer’s second most popular travel weekend, after Memorial Day which saw over 34 million Americans on the road.
And although many are planning to travel during the upcoming holidays, GasBuddy reports that 70 percent of drivers have reportedly changed their summer tour plans due to high gas prices.
President Joe Biden called on oil companies to cut gas costs, claiming the nation is in a “wartime”
Biden tried to address the fuel crisis on Wednesday by urging both Congress and the oil companies to help.
“For the companies that run gas stations and put these prices at the pump, this is a time of war, global danger, Ukraine, these are not normal times. Bring down the price you charge at the pump to reflect the price you pay for the product, Biden said in a speech at the White House. ‘Do it now. Do it today. Your customers, the American people, they need relief now. ‘
Biden said gas prices have risen to $ 2 per gallon in the United States – the current average is $ 4.91 per gallon according to AAA – since Putin’s invasion of Ukraine.
He and his administration have repeatedly blamed the Russian president, calling the high cost of goods and services ‘Putin’s price increase.’
“We could have closed our eyes to Putin’s murderous ways. The price of gas would not have increased as it has, Biden said.
‘And it was not just me. The American people understood. The American people rose to the moment. The American people did what they had always done, defending freedom all over the world. They chose to stand with the people of Ukraine. We had almost unanimous support in Congress, Democrats, Republicans and Independents to support Ukraine, knowing the cost, he said.
The record high inflation rate has caused food, gas and housing prices to rise in the United States
Biden also asked states to temporarily suspend state fuel taxes, which are often higher than federal rates.
The administration wants Congress to suspend the federal gas tax – about 18 cents per gallon of gasoline and 24 cents per gallon of diesel – until the end of September, just before the midterm elections.
Some vulnerable Democrats have pushed for such a move ahead of the November election, which will determine control of Congress. However, the voices on Capitol Hill may not be there.
Biden and his team have been considering and requesting suspension for several months, amid growing pressure to combat financial pain at the pump.
But experts have questioned how much the suspension of the gas tax will save consumers – it is less than 5 percent of the total cost of the pump.
During the 2008 presidential campaign, Barack Obama called suspending the gas tax a “gimmick” that allowed politicians to “say they did something.”
Federal Reserve chief Jerome Powell broke with Biden, saying inflation was rising well before Russia invaded Ukraine in February.
In his Wednesday remarks, the president also addressed his critics who blame him and his economic policies for the record high inflation, which has caused food, gas and housing prices to rise.
“So for all those Republicans in Congress, I’m being criticized today for high gas prices in America. Are you saying now that we were wrong when we supported Ukraine? Are you saying that we were wrong to stand up to Putin, are you saying that we would rather have lower gas prices in America and Putin’s Iron Fist in Europe? ” he said.
But in testimony on Capitol Hill on Wednesday, central bank governor Jerome Powell broke with Biden, saying that inflation was rising well before Russia invaded Ukraine in February.
Republican Sen. Bill Hagerty of Tennessee asked Powell, “Given how inflation has escalated in the last 18 months, would you say that the war in Ukraine is the primary driver of inflation in America?”
“No, inflation was high before – certainly before the war in Ukraine broke out,” Powell replied.
