UPDATED: Mar 13, 2020
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If you’re planning on traveling by car over the Thanksgiving holiday, you’ll certainly be paying more than you did last year, and it’s quite possible you’ll have to pay much more, as it looks as if gas prices are set to rise over the next few weeks.
Gas prices have fallen four cents over the last week, coming in at $3.41 a gallon on average nationwide, compared to $3.45 the week before, AAA is warning that travelers may be in for much higher prices in the weeks ahead as we approach the upcoming holiday.
On the surface, it might seem odd that higher gas prices are being predicted even though as of late, the cost of gasoline has been falling. Digging below the surface gives clues as to why increases are expected. Even as gas prices have decreased, the cost of crude oil shot up throughout the month of October. On October 4, a barrel of crude oil was priced at $75.67. Today, the same barrel of crude is priced at $93.19.
The price of gasoline, however, has mostly flat through much of the country, and in some locations, it continues to fall. According to the Department of Energy, demand for gasoline has fallen, coming in at more than nine percent lower than the week before. Over the last four weeks, demand is off three percent compared to the same period in 2010.
“This is an extremely volatile environment for prices, and these factors have led to dramatic swings this year,” said Marie Dodds, AAA Public Affairs Director.
Last year at this time, a gallon of gas was 61 cents cheaper per gallon, coming in at a national average of $2.80.