U.S. gasoline consumption over Memorial Day weekend, the start of the U.S. driving season, rose by 2% from the same weekend last year as consumers took advantage of lower prices at the pump.
The higher demand at the start of the summer driving season suggests good profits for the U.S. oil refiners that make the fuel, at least for now.
The lower gasoline prices compared to last year gives a big push up to U.S. gasoline consumption. Prices were $3.162 per gallon of regular gasoline nationwide on Friday, according to AAA data. That’s $0.40 a gallon cheaper than at this time last year, when the national average was $3.568.
The cheaper gasoline prices are a key driver of increased demand this Memorial Day weekend, Patrick De Haan, head of petroleum analysis at GasBuddy, told Bloomberg in an interview published on Friday.
“Refineries have a lot of room to run hard,” De Haan said, referring to refiners’ preparedness to meet gasoline demand.
AAA had estimated before the holiday weekend that a record number of 45.1 million people would travel at least 50 miles from home over the Memorial Day holiday period, up by 1.4 million travelers compared to last year, setting a new Memorial Day weekend record. The previous record was set back in 2005 with 44 million people, AAA said.
“This spring – thanks to lower crude oil prices – gasoline prices haven’t seen typical seasonal spikes,” the association said.
Gas prices haven’t been this low over Memorial Day since 2021 when the national average was $3.04 per gallon, AAA said. Supply and demand are playing a role in this year’s lower pump prices as crude oil supply is currently surpassing demand.
At the end of this week, relief from refinery issues is sending gasoline prices down on the West Coast and in the Midwest, GasBuddy’s De Haan said on Thursday. Some of the biggest week-over-week declines are seen in Michigan, Ohio, Indiana, Nevada, California, and Arizona, with Washington and Oregon soon to follow, per GasBuddy estimates.
By Charles Kennedy for Oilprice.com
