Fourth-of-July Road Trips Set To Smash Records As Fuel Prices Remain Low: AAA

Record numbers of U.S. citizens are expected to take their cars out for a drive over the Independence Day holiday period, aided by lower fuel prices, the American Automobile Association said on Friday.

“Drivers are seeing some increases at the pump, but summer gas prices are still the lowest they’ve been since 2021,” the group said in a statement.

The association expects 61.6 million people to travel by car between June 28 and July 6, representing a 2.2% increase over the same period last year. AAA said that its car rental partner, Hertz, reported that July 3 is expected to be the busiest day for vehicle pickups.

Oil prices have remained under pressure this year and fell below $60 per barrel in April following the twin blows of Donald Trump’s tariffs and a rapid increase in oil supplies, spearheaded by the OPEC+ group of producing countries. However, the ongoing conflict between Israel and Iran has pushed prices at the pump higher.

The U.S. Energy Information Administration has projected that retail gasoline prices will decrease across the United States through the end of 2026, except for on the West Coast, where refinery shutdowns will lead to a 4% annual price increase next year.

The lukewarm forecasts have further soured the outlook for the U.S. refiners, which are already grappling with lower margins.

According to AAA data, air travel is also expected to hit a new record. The group expects 5.84 million travelers to fly to their destinations, representing 8% of all Independence Day travelers.

Retail sentiment for top U.S. refiners Phillips 66, Marathon Petroleum, and Valero Energy was ‘bullish’ amid optimism about an improvement in oil demand.

Also See: Chevron Reportedly Seeking Buyers For Singapore Refinery Stake Amid Cost-Cutting Drive

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