Prior to the July 4 holiday, gas prices are predicted to drop by much to 20 cents per gallon, but analysts claim the respite at the pump is only momentary.
Fuel price tracker analysis According to GasBuddy, as of June 25, a gallon of gas costs $4.91.
GasBuddy predicts that the price will continue to decline, but only momentarily, from an all-time high of $5.03 on June 13.
Americans will pay the highest Independence Day gas prices ever, according to fuel price monitor GasBuddy, despite the anticipated reduction, the cause of which has not been disclosed.
Because of the “extreme volatility in markets,” GasBuddy experts also caution that a “mega spike” in fuel costs is likely to happen later in the summer.
The company’s most recent projection comes as President Joe Biden urged Congress to postpone the federal gas tax until September.
Republicans reject the proposal, and some Democrats even dismiss it out of worry that the savings could go to the oil industry rather than consumers.
Announcing that the country is in a “time of war” as a result of Putin’s invasion of Ukraine, Biden also urged oil corporations to reduce gas prices.
Jerome Powell, the chairman of the Federal Reserve, questioned the statement and asserted that the main cause of the price increase was not Russia’s invasion of Ukraine.
GasBuddy projects that by July 4, U.S. gas prices will have decreased by 10 to 20 cents per gallon from their recent peak of $5 per gallon nationwide.
According to Patrick De Haan, head of petroleum analysis at GasBuddy, “It’s been a scorching summer at the pump with records set in every state.”
“Motorists should be aware that while we may feel a little respite today, there is still a chance that prices could increase at any time and break new records.”
De Haan pointed out how several outside forces could have an immediate impact on American fuel prices.
Although we might get some reprieve as the Fourth of July approaches and perhaps even after, the market volatility is still very high, he said. If a hurricane threatens Gulf Coast oil refineries or oil platforms, “we still could see a major increase in gas prices later this summer.”
GasBuddy did not immediately react to DailyMail.com’s request for clarification, so it is unclear what caused the business to forecast a loss of up to 20 cents per gallon.
However, since reaching their peak on June 11, prices at the pump have been gradually declining.
More than 58 percent of Americans still intend to travel by car this summer, despite the sky-high gas prices.
A recent GasBuddy study of Americans found that 33% expressly planned their road trip to take place over the Fourth of July long weekend.
Although we may occasionally get some temporary relief, De Haan observed that despite the economy being fully restored, many Americans do not appear to be deterred from traveling by the high prices.
Following Memorial Day, when more than 34 million Americans traveled, Independence Day weekend will rank as the second-most popular travel weekend of the summer.
Although many people intend to travel over the approaching holiday, according to GasBuddy, 70% of drivers apparently changed their plans for a summer road trip due to the high cost of gas.
On Wednesday, Biden made an attempt to alleviate the fuel situation by urging Congress and the oil industry to offer assistance.
“This is not normal times, according to the firms running gas stations and establishing those prices at the pump.
We are in a period of war, global peril, and Ukraine. Biden remarked in a speech at the White House, “Bring down the price you are charging at the pump to match the price you are paying for the product.”
“Do it now. Try it now. The American people, who are your customers, urgently require relief.
According to Biden, since Putin’s invasion of Ukraine, petrol prices have increased to $2 per gallon in the United States (the current average is $4.91 per gallon, according to AAA).
He and his government have often blamed Putin for the high cost of goods and services, referring to it as “Putin’s price rise.”
We could have ignored Putin’s terrible behavior. Gas prices wouldn’t have risen as dramatically as they have, according to Biden.
It wasn’t just me, either. The American populace recognized. The people of America responded appropriately.
The American people carried out their long-standing tradition of defending freedom abroad. They made the decision to support the Ukrainian people.
Despite being aware of the costs, we had nearly unanimous support in the Congress from Democrats, Republicans, and independents,’ he said.
Additionally, Biden urged states to temporarily suspend their frequently higher than federal fuel taxes.
The federal gas tax, which is around 18 cents per gallon of gasoline and 24 cents per gallon of diesel, should be suspended by Congress through the end of September, right before the midterm elections.
Prior to the November election, which will determine which party controls Congress, some weak Democrats have been advocating for such a move. However, there might not be enough votes on Capitol Hill.
In response to mounting pressure to address financial hardship at the pump, Biden and his colleagues have been considering pushing for a suspension for months.
Experts have questioned the exact amount that consumers will save from the suspension of the gas tax because it amounts to less than 5% of the overall cost at the pump.
During his 2008 campaign for president, Barack Obama referred to the gas tax suspension as a “gimmick” that allowed lawmakers to “claim that they accomplished something.”
The president responded to those who blame him and his economic policies for the record-high inflation that has driven up the cost of food, gas, and housing in his remarks on Wednesday.
“Therefore, to all those Republicans in Congress who today condemn me for the high cost of petrol in America. Do you now claim that we made a mistake by supporting Ukraine?
Are you implying that we erred by opposing Putin or that we would prefer lower gas costs in America and Putin’s Iron Fist in Europe?’ he questioned.
Jerome Powell, the chairman of the Federal Reserve, disagreed with Biden during his hearing on Capitol Hill on Wednesday, claiming that inflation had been rising for some time prior to Russia’s invasion of the Ukraine in February.
Would you believe that the war in Ukraine is the main cause of inflation in America, as Senator Bill Hagerty of Tennessee’s Republican Party asked Powell in light of the rise in inflation over the past 18 months?
Powell retorted, “No, inflation was high before — certainly before the outbreak of the war in Ukraine.”