July 4 Gas Price Forecast: Highest Average Since 2014

A record-breaking 46.9 million Americans are expected to travel more than 50 miles from home this Independence Day holiday, according to American Automobile Association estimates.

Why Gas Prices Are Rising

AAA’s figures show that the vast majority — 39.7 million people — will take to the roads, despite higher prices at the pump.

Motorists will shell out an estimated average of $2.90 per gallon, the highest Independence Day level since 2014, according to GasBuddy. Gas prices averaged $3.66 per gallon in 2014, and dropped each year through 2017.

Gas prices had dropped for five straight weeks before reversing Wednesday as oil surged to $73 per barrel. They are expected to continue climbing ahead of July 4.

The U.S. State Department’s order that buyers curb their purchases from Iran by November, as well as OPEC’s recent meeting — during which the organization announced a smaller-than-expected production cap increase — are affecting oil prices.

These events, combined with a government report showing U.S. inventories dropped more than expected as total exports hit new highs, have fueled speculation that global inventories will continue to drop.

American motorists are projected to pay over $1 billion more than last year over the first four days of July.

Finding A Deal

For travelers who fear overpaying for gas, GasBuddy’s head of petroleum analysis Patrick DeHaan recommends checking prices before crossing state lines.

“In some extreme cases, we’ve seen consumers spend an extra $25 on a single tank when refueling on the wrong side of the line,” said DeHaan.

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