US summer road travel set to rise as petrol prices fall
American drivers are expected to take more road trips in summer 2015, with national petrol prices forecast to reach their lowest seasonal level since 2009.
Petrol prices across the United States are forecast to fall further through summer 2015, with the American Automobile Association (AAA) predicting that lower costs at the pump will encourage millions more to take to the roads. The national average price per gallon hovered at $2.75 last week, but analysts expect this figure to drop as the season progresses.
AAA’s latest report suggests six out of ten Americans are considering a road trip of at least 50 miles this summer, provided fuel prices remain at or below current levels. The association said that lower petrol prices could save drivers hundreds of dollars over the course of the season, making domestic travel more attractive than in recent years.
The US Energy Information Administration (EIA) reported that petrol demand in the week leading up to Memorial Day reached its highest point since August 2007, underlining the early impact of cheaper fuel on travel habits. High inventories of both oil and petrol are helping to keep prices stable, and the completion of seasonal refinery maintenance is expected to further ease supply constraints.
Why petrol prices are dropping
Global crude oil prices have stabilised after a period of volatility, and US refineries are returning to full output following spring maintenance. These factors, combined with strong domestic supply, are driving the predicted fall in summer petrol prices. Historically, US petrol prices in June have dropped by an average of 12% over the past five years.
Potential risks to lower prices
Analysts caution that several factors could still push petrol prices higher. Geopolitical instability in the Middle East, unexpected outages at major US refineries or a severe Atlantic hurricane season could disrupt supply and reverse the downward trend. For now, however, high inventories and steady production are supporting the outlook for cheaper fuel through the summer.
Impact on US motorists and travel patterns
Cheaper petrol is expected to boost domestic tourism and road travel, as American families take advantage of lower costs to plan longer journeys. According to AAA, this could be the strongest summer for road trips in several years, with the potential for increased spending on accommodation, dining and attractions along major routes.
With US petrol supplies remaining high and global oil prices relatively stable, the conditions are in place for a busy summer on American roads, provided no major supply shocks emerge.
