AAA is forecasting a spike at the gas pump for the coming Fourth of July weekend. The company pointed to the rising conflict in Iraq as a direct contributor to the increases seen, let alone the pending holiday weekend. Currently, the national average is around $3.68 for a gallon of regular unleaded gas. Gas Buddy.com reports the west coast is seeing well over $4.00 for a gallon of regular unleaded. Based on the current pricing versus last year, there is already a 23 cents increase at the gas pump.
Tom Kloza who is a chief oil analyst for Gas Buddy.com states 2014 will bring the “highest July 4th prices since 2008,” echoing AAA’s assessment of the Iraq civil war. Kloza states if violence moves near the south of Baghdad, the national average can spike to $4.00 a gallon.
Despite the pending increase at the gas pump, AAA executives said it does not seem to slow down the plans of Fourth of July travelers. An estimated 41 million citizens are expected to travel a minimum of 50 miles from home for the coming weekend. AAA states the numbers are an approximation from July 2nd to the 6th.
Based on the level of demand, many gas stations may place taxes per gallon, starting after the first of the month, to offset demand.
In April, Americans saw the national average peak at $3.70. Some states, such as in the southeast portion of the U.S. pay a bit less, while drivers in Alaska can see prices spike beyond $4.20 for a gallon.
With the Fourth of July weekend expected to see an increase in traffic, AAA and Gas Buddy.com, warn drivers not to be surprised to see higher than normal prices, than in previous years. It appears the increase is doing little to stem the travel plans of millions of Americans.
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