Motorists kicked off the unofficial start of the summer road trip season this Memorial Day with little movement in gas prices, but that could change as the summer advances, according to AAA.
The national average cost for a gallon stayed steady from last week at $3.57, as demand for gas and oil prices fell, even as more than 37 million Americans drove to their destinations on the holiday weekend, AAA said.
Gas demand dropped to 9.1 million barrels a day from 9.43 million last week as domestic gasoline stocks decreased slightly to 216.1 million barrels of crude oil, according to Energy Information Administration (EIA) data. This drop in demand has helped keep prices from increasing, AAA said.
"Although millions hit the road last weekend, gasoline demand fell," AAA spokesperson Andrew Gross said. "Meanwhile, the cost for a barrel of oil dropped below $70 per barrel.
"Pump prices could dip further as the start of summer approaches," Gross continued.
If you're trying to lower your overall auto costs, you could consider switching auto insurance providers. You can visit Credible to compare quotes from different companies without affecting your credit score.
Gas prices registering lower than last summer
Memorial Day kicks off what is typically a volatile time for gas prices, according to GasBuddy. However, gas prices will likely register well below last year when the national average started to soar after Memorial Day on its way up to the $5 per gallon mark.
There is a chance that as the summer progresses, gas prices will begin to dip, barring a climate event, according to GasBuddy's head of petroleum analysis Patrick De Haan.
Another factor that could impact gas prices is the U.S. debt limit crisis resolution. This could renew optimism that the economy is on track to bypass a significant recession. That, in turn, may boost oil prices and trigger a rally in gas prices.
"Gasoline prices have drifted higher in the last week due to some relatively minor refinery kinks and low gasoline supply, but it may not be a trend that lasts too much longer," De Haan said. "As we unofficially start the summer driving season, the national average is likely to spend much of the summer in the range of $3.35 to $3.85 per gallon, though it could go higher if unexpected refinery outages flare up, or we see a major hurricane or economic development."
One way to save on summer expenses is by lowering the amount you spend on car costs. If you are looking to save money on your car costs, you could consider changing your auto insurance provider to get a lower monthly rate. Visit Credible to shop around and find your personalized premium without affecting your credit score.
No break in insurance rates this summer
Insurance rates are expected to add to drivers' costs this summer as insurers signal that rate hikes are in store for the rest of this year, according to a recent Policygenius report. The report said that Drivers face these increased costs even if they haven't filed a claim.
Two of the nation's largest providers – Progressive and Allstate – recently announced that they will raise rates for drivers to improve profitability. Insurers have paid more on claims than anticipated as inflation and rising costs impact the cost to repair cars and healthcare costs increase.
"If it looks like your rates have gone up for no reason, it may be because the company had to pay out a lot of insurance claims at once (like after a hurricane) or because things are just generally more expensive," Policygenius said. "When prices for car parts and repairs rise, insurance companies have to pay out more for claims, and they often pass those increases on to the policyholders."
If you are looking to save money on your car costs, you could consider changing your auto insurance provider to get a lower monthly rate. Visit Credible to shop around and find your personalized premium without affecting your credit score.
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