News that the Department of Energy will tap 30 million barrels of oil from its Strategic Petroleum Reserve gave hope to consumers struggling with gas prices that currently average over $3.50 a gallon.
While the projected move caused an immediate drop in oil prices on Thursday, it could unfortunately be weeks after Independence Day before Americans experience similar changes at the pump.
For this reason, AAA is expecting the number of Americans traveling this Fourth of July weekend will fall to 39 million from 40 million last year. This 2.5 percent drop is the third decline in four years according to the nation’s biggest motoring organization.
“Without significant momentum from the broader economic outlook, the effect of continued high gas prices will result in a lower volume of travelers this holiday than last year,” AAA said in its national forecast.
While road trips are expected to decrease, air travel during the July 4 holiday is projected to increase — despite the fact that holiday airfares will be 11 percent higher in 2011 — 9.8 percent to 3.02 million.
“The increasing cost of travel by car is making air travel a more viable option for some travelers, despite recent increases in air fares,” according to the release.
via Patch
