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Published: Sat, May 27, 2017
Economy | By Melissa Porter

Texas, US retail gasoline prices up before holiday weekend

Texas, US retail gasoline prices up before holiday weekend

While the largest number of people in a decade is projected to travel this Memorial Day Weekend, Georgians hitting the road will some relief at the gas pumps. Mike Right of Triple-A Missouri tells News Talk KZRG what we can expect to pay at the gas pumps this weekend. Since Memorial Day 2016, the average price for a gallon of gas has fluctuated just 31 cents, dropping to the low of $2.12 (Aug 4, 2016) and rising to the high of $2.43 (April 22, 2017).

A key finding behind the surge in travel is a feat never before seen: the national average gasoline price today is almost the same (up 1.5 cents) as it was to start the year ($2.34), compared to the average increase of 47 cents, and also almost the same as Memorial Day last year ($2.33). Seventy percent plan to take at least two trips, according to the survey.

But site data have shown that lower prices often result in a wider spread - the difference between the cheapest and most expensive gas in a given city. The majority of those - 34.6 million - are expected to drive. "Pump prices are lower than last year's holiday, but could face upward pressure by the end of the week, depending on the outcome of an OPEC meeting Thursday". The existing agreement, set back in November, called for a reduction of 1.8 million barrels per day, which sent oil prices 20 percent higher and gas prices up 20 cents in as many days.

The predictions were based on OPEC's decision to cut fuel production and an improving US economy that was expected to spark an increase in demand.

Oil prices rose earlier this week over expectations of further cuts to the crude oil supply. "The futures markets will be very reactive to the rhetoric leading up to the meeting this week, and ultimately the final decision Thursday, which will steer fuel prices this summer".

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