Travel club AAA put the national average retail price at $3.54 for a gallon of regular unleaded gasoline on Monday, unchanged from week-ago levels. The price at the pump has decoupled somewhat from the price of crude oil, with West Texas Intermediate, the U.S. benchmark for the price of oil, climbing about 2% last week.
That rally was supported by optimism over talks on the U.S. debt ceiling, a sentiment that changed quickly during President Joe Biden's visit to the G7 summit in Japan.
"My position has not changed," House Speaker Kevin McCarthy, R-Calif., said after speaking with Biden during the weekend. "Washington cannot continue to spend money we do not have at the expense of children and grandchildren."
Concerns about a U.S. debt default, coupled with lingering inflationary pressures, may be curbing consumer confidence somewhat and keeping a lid on gasoline prices.
"While gas prices are far lower in most areas than they were last year, Americans seem to feel a bit worse about the economy this year on the heels of rising interest rates, the bank crisis, and inflation that has spiked, impacting their ability to take a road trip during the summer driving season," said Patrick De Haan, the head of petroleum analysis at GasBuddy.
Both AAA and GasBuddy are expecting heavy travel volumes this year, though DeHaan said many plans depend on consumer tolerance for uncertainty about the economic future.
DeHaan found about 64% of those surveyed said they expected to hit the road for a summer holiday this year, up from 58% last year. Of that, however, 60% have yet to make concrete travel plans.
Nationally, meanwhile, only Mississippi is posting a state average below $3 per gallon. The federal government anticipates a full-year average of $3.33 per gallon for 2023 and $3.09 per gallon for next year.
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