Posts Tagged ‘AAA.com’

Gasoline Closes in on $3 per Gallon

October 27th, 2014 by admin

Michael Green Contact Tile(WASHINGTON, October 27, 2014) The national average price for regular unleaded gasoline is $3.04 per gallon, the lowest mark since December 27, 2010. Today’s price is six cents less than one week ago and twenty-five cents less than one year ago. The national average has now dropped for 32 consecutive days for a total of 30 cents per gallon.

Gas prices typically decline this time of year, but have fallen more swiftly than typical due to the sharply declining price of crude oil. The cost of crude oil accounts for approximately two-thirds of the price consumers pay for gasoline, which means, barring any other factors, gas prices continue to fall as long as crude oil prices decline. Today’s national average price of gas represents an 18 percent savings compared to the 2014 high of $3.70 per gallon, which was reached on April 28.

National Average Gas Price Comparison 2011-2014

Seventeen states currently register an average gas price below $3.00 per gallon with drivers in South Carolina ($2.79), Tennessee ($2.79) and Mississippi ($2.80) paying the nation’s lowest average prices at the pump. Hawaii remains the nation’s most expensive market for retail gasoline with an average above $4.00 per gallon ($4.05) followed by Alaska ($3.77), New York ($3.41) and California ($3.39).

Week-over-week, average prices are down in 40 states and Washington, D.C. with the steepest drops in the Pacific Northwest: Oregon (-15 cents) and Washington (-13 cents). The average price for retail gasoline has ticked upward in 10 states with the price up a nickel or more compared to one week ago in six states. Drivers in Minnesota (+16 cents) and Oklahoma (+12 cents) in particular have seen prices jump over the past week due to tighter supplies even as the national average has ticked lower. While retail gasoline in these states is less expensive than both a month and year ago, pump prices could continue to buck the national trend until additional gasoline reaches those markets in early November.

Top Ten Most Expensive Average Gas Prices

Drivers in every state and Washington, D.C. continue to enjoy month-over-month and year-over-year savings at the pump. Compared to this same date last month, state averages are down by a quarter or more in 35 states. Oregon (-48 cents), Washington  (-47 cents) and Delaware (-40 cents) are registering the largest discounts over this period, but drivers in every state and Washington, D.C. are saving more than a dime per gallon. Year-over-year, the average price at the pump is down by a dime or more in 46 states and Washington, D.C., led by Delaware (-39 cents), Tennessee (-36 cents) and Alabama (-36 cents). Eighteen states are reflecting prices discounted by a quarter or more in comparison to this same date last year.

Top Ten Largest Monthly Savings in Gas Prices

Continuing unrest in Iraq and geopolitical tensions in Eastern Europe have taken a backseat to an emerging belief by many market watchers that global supply – including significantly higher oil production in the United States – is outpacing global demand growth. This assessment has helped sink West Texas Intermediate (WTI) crude oil prices to near $80 per barrel for the first time since June 2012 and has fueled speculation of how the Organization of Petroleum Exporting Countries (OPEC) will respond to the falling price of crude. OPEC is scheduled to convene on November 27 in Vienna to discuss global demand and the impact of increased production by non-OPEC countries. At the close of formal trading on Friday, WTI was down $1.08 at $81.01 per barrel on the NYMEX, and prices have fallen below $80 in morning trading today.

AAA urges motorists to Take Two for safety

October 27th, 2014 by admin

Heather HunterSimple tire checks can improve winter driving.

ORLANDO, Fla., (October 27, 2014) – Worn tires can send a car into dangerous skids and spins on wet and icy winter roads. Checking tire pressure and tread depth monthly can help motorists keep tires in optimal condition, according to AAA.

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“The two most important tire safety checks – a pressure reading and tread depth measurement – are very simple to do,” according to Greg Brannon, AAA’s director of Automotive Engineering. “If motorists spend about two minutes on each tire, they will keep their tires at peak performance.”

Monthly tire checks take two steps:

  • Measure tread depth with a quarter rather than a penny. When the top of Washington’s head is exposed, the tread depth is 4/32″ or less and it’s time to start shopping for new tires.
  • Use a quality gauge to check tire pressure. For proper results, make sure tires are cold. Look for the recommended air pressure in the vehicle’s owner’s manual the tire information decal located inside the driver’s side door or in the glove compartment. The number molded into the tire sidewall is not recommended for normal operating condition; this specification is for a tire that is carrying its maximum rated payload.

“Worn tires should be replaced immediately because they significantly impact safety,” says Brannon. “Testing has shown that tires with only half of their tread depth can take up 6 feet longer to stop from 40 miles-per-hour on a wet surface, even with the antilock braking system engaged.”

Additional information regarding AAA’s recommendations for proper vehicle maintenance is available on the AAA Newsroom and AAA’s YouTube channel. AAA’s network of more than 7,000 Approved Auto Repair providers is listed on AAA.com.  AAA members can receive a free maintenance inspection anytime they have work performed at any of these locations.

AAA continually conducts proprietary research to better understand consumer implications of automotive technology, design and functionality.

As North America’s largest motoring and leisure travel organization, AAA provides more than 54 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

Price Of Gasoline Reaches New 44-Month Low

October 20th, 2014 by admin

Michael Green Contact Tile(WASHINGTON, October 20, 2014) With oil prices sharply lower over the last several weeks, the national average pump price has followed suit and has now dropped on 25 consecutive days. This tumble has sent the national average to a low not seen since early 2011 and increased the likelihood that the national price at the pump could test the $3.00 per gallon mark for the first time since 2010.

Today’s national average price for regular unleaded gasoline is $3.10 per gallon, representing the lowest price since February 1, 2011. The national average has fallen by a dime since one week ago and is 25 cents less than both one month and one year ago. This year-over-year gap has reached its widest mark since March.

Drivers are savings an average of 60 cents per gallon compared to the 2014 high of $3.70 (April 28), and pump prices have tumbled 10 percent since Labor Day when the national average registered $3.44 per gallon. For every penny that the national average falls (were the lower price sustained over the course of a year) more than one billion dollars per year in additional consumer spending is estimated to be freed up.

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Motorists in 17 states now pay an average price below $3.00 per gallon. The nation’s 10 most expensive markets are composed primarily of states on the West Coast and in the Northeast led by: Hawaii ($4.08), Alaska ($3.80), California ($3.50) and New York ($3.45). On the other end of the spectrum, consumers in Missouri are paying $2.77 per gallon for regular unleaded gasoline, a low unseen in the state since 2010.

Compared to one week ago, the average price at the pump is down in 48 states and Washington, D.C. Motorists in 23 states and Washington, D.C. are saving a dime or more per gallon week-over-week with the largest discounts in Kentucky (-17 cents), Indiana (-16 cents) and Georgia (-14 cents). There are two states where the price has ticked upward over this same period: Ohio (+3 cents) and Michigan (fractions of a penny).

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The average price paid by drivers to refuel their vehicles is down in every state and Washington, D.C. both month-over-month and year-over-year. In comparison to this same date last month, consumers in every state and Washington, D.C. are saving 15 cents per gallon or more at the pump, and of this total there are 24 states where the price has fallen by a quarter or more per gallon. The Western states of Washington and Oregon (both down 40 cents) are registering the largest discounts over this period, followed by Kentucky and Colorado (down 39 cents). Year-over-year, 47 states and Washington D.C. are saving a dime or more per gallon at the pump and 25 states are registering discounts of a quarter or more led by Kentucky (-42 cents), Indiana (-40 cents) and Delaware (-36 cents).

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Geopolitical tensions in Iraq continue to be viewed by market watchers as posing a minimal threat to the region’s oil production. Sentiment for crude oil prices has remained bearish and it is speculated that the Organization of Petroleum Exporting Countries (OPEC) will continue to protect its market share by sustaining current levels of production rather than cutting output to increase the global price of oil. OPEC member countries are responsible for 40 percent of the world’s oil production and are scheduled to convene on November 27 in Vienna to discuss whether to sustain or reduce production. West Texas Intermediate (WTI) closed out last week by settling up a nickel at $82.75 per barrel at the close of formal trading on the NYMEX. WTI was trading slightly lower to open the day today.

Heather HunterAAA suggests motorists mark November 2 for key winter car care checks

ORLANDO, Fla., (October 20, 2014) – Consumers have leveraged the changing of the clocks to remember important but infrequent tasks like replacing smoke alarm batteries. AAA suggests motorists also use this event as a reminder to check their vehicle for winter readiness.

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“The end of daylight savings time means that winter weather is on the way, which can be rough on your car,” says AAA’s director of Automotive Engineering, Greg Brannon. “This is a good time to have vehicle systems checked and perform important maintenance to ensure your car is in peak condition.”

Harsh winter conditions make your vehicle work harder, particularly the charging and starting system, headlights, tires and windshield wipers. AAA recommends that motorists:

  • Clean any corrosion from battery posts and cable connections and wash all surfaces with battery terminal cleaner or a solution of baking soda and water. Have the battery checked by a professional to ensure it is strong enough to face cold weather.
  • Have any engine drivability problems corrected at a good repair shop. Symptoms like hard starts, rough idling, stalling or diminished power could signal a problem that would be exacerbated by cold weather.
  • Replace worn windshield-wiper blades. If your climate is harsh, purchase one-piece beam-type or rubber-clad “winter” blades to fight snow and ice build-up. Use cold-weather windshield washer solvent and carry an ice-scraper.
  • Inspect all lights and bulbs and replace burned out bulbs. Clean road grime or clouding from all lenses.
  • Have your mechanic check the exhaust system for leaks and look for any holes in the trunk and floorboards.
  • Examine tires for tread depth, uneven wearing and cupping. Check tire pressures once a month when tires are cold, before driving for any distance. In extreme climates, a set of winter snow tires may be a wise investment.

Additional information regarding AAA’s recommendations for proper vehicle maintenance is available on the AAA Newsroom and AAA’s YouTube channel. AAA’s network of more than 7,000 Approved Auto Repair providers is listed on AAA.com.  AAA members can receive a free maintenance inspection anytime they have work performed at any of these locations.

AAA continually conducts proprietary research to better understand consumer implications of automotive technology, design and functionality.

As North America’s largest motoring and leisure travel organization, AAA provides more than 54 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

Heather Hunter

 

 

 

 

 

  • Service intervals for oil changes, brake, transmission and power steering fluids and coolant have increased with advances in technology.
  • Monthly safety checks are critical for detecting issues that could lead to a hazardous situation or major repair.

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ORLANDO, Fla., (October 14, 2014) – New fluid technologies and engine designs have combined to reduce the burden of properly maintaining today’s vehicles. Fewer trips to the repair facility, however, may put motorists at risk of missing clues that could head off safety issues or expensive repairs.

“Every vehicle has a unique maintenance schedule, but many automakers are extending service intervals for vehicle fluids,” says John Nielsen, AAA’s managing director of Automotive Engineering and Repair. “Less maintenance improves the cost of vehicle ownership, but fewer visits to the repair facility means the technician will have fewer opportunities to check your vehicle for signs of wear. It’s important for motorists to conduct monthly safety inspections to identify issues before they escalate.”

Examples of new fluid service intervals include:

  • Oil: Cars today are designed to travel at least 5,000 miles between oil changes, and many newer models can be driven up to 7,500 miles or more before an oil change is necessary. Some vehicles that use full-synthetic engine oils have service intervals approaching 15,000 miles.  Be sure to check your oil level, either under the hood or through the vehicle’s onboard computer system.
  • Coolant: Requirements for flushing the coolant can vary from every two years to more than 100,000 miles, depending on the coolant type used. However, be sure coolant levels are correct as leaks in the system could cause major issues.
  • Brake fluid:  Most vehicle manufacturers recommend that brake fluid be replaced periodically to flush moisture and contaminants from the system. Check your vehicle owner’s manual for specific recommendations. If not specified, AAA recommends flushing the brake system and replacing with new fluid every two years.
  • Transmission fluid: Modern automatic transmissions are increasingly being filled with “lifetime” fluids that do not need to be changed until the vehicle has traveled 100,000 miles or more. The owner’s manual or maintenance booklet is the definitive source for specific transmission fluid requirements.

A monthly, 10-minute vehicle inspection can highlight issues that need attention. Motorists should check the level of the engine oil, brake fluid, engine coolant, washer fluid and power steering fluid.  In addition, a check of the tire pressure and tread depth will help ensure safety on the road.

Additional information regarding AAA’s recommendations for proper vehicle maintenance is available on the AAA Newsroom and AAA’s YouTube channel. AAA’s network of more than 7,000 Approved Auto Repair providers is listed on AAA.com. AAA members can receive a free maintenance inspection anytime they have work performed at any of these locations.

AAA continually conducts proprietary research to better understand consumer implications of automotive technology, design and functionality.

As North America’s largest motoring and leisure travel organization, AAA provides more than 54 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

Gas Prices Fall Nine Cents in One Week

October 13th, 2014 by admin

Michael Green Contact Tile(WASHINGTON, October 13, 2014) The national average price for regular unleaded gasoline has fallen for 18 straight days, reaching today’s price of $3.20 per gallon. This price represents a new 2014 low and is the lowest average for the Columbus Day holiday since 2010 when gas averaged $2.81 per gallon. Today’s average price is nine cents less than one week ago, 20 cents less than one month ago and 15 cents less than one year ago.

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Drivers in six states are paying an average price below three dollars per gallon to refuel their vehicles with eight additional states posting prices within a nickel of this mark. Motorists in Missouri saw the average price fall below the $3.00 threshold this past Tuesday, and for the second week in a row are paying the nation’s lowest average price per gallon ($2.90).  Although the average price in Hawaii has fallen by four cents over the past seven days, it continues to lead the market with an average retail price above $4.00 per gallon ($4.13). Californians still pay the highest average ($3.60) in the continental U.S. followed by New Yorkers and Oregonians who are both paying $3.52 per gallon.

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The average price is down in every state and Washington, D.C. in both week-over-week and month-over-month comparisons. Week-over-week the retail price has dropped by a dime or more in 13 states with drivers in the Midwestern states of Minnesota (-16 cents), Michigan (-15 cents) and Kentucky (-14 cents) saving the most per gallon. Motorists in 46 states and Washington, D.C. are saving a nickel or more over this same period.  Even larger drops in the price at the pump are reflected over the past month. Michigan (-40 cents), Delaware (-35 cents), Washington (-33 cents) and Oregon (-32 cents) are registering the largest discounts in price over this period, followed by 10 other states where the average price is down by a quarter or more. State averages have fallen by a dime or more in every state but Florida, where prices have fallen only nine cents.

Year-over-year the average price for retail gas is lower in every state but Alaska (where prices are up less than a penny), and consumers in 48 states and Washington, D.C. are saving a nickel or more per gallon. The price has dropped by a dime or more in 38 states with consumers in Michigan (-30 cents), Minnesota (-30), Ohio (-27 cents) and Delaware (-25) saving a quarter or more per gallon to refuel their vehicles.

Top10-Monthly-Savings-10-13-14

Low demand combined with abundant supply has kept downward pressure on global oil prices. The impact of falling prices is currently front of mind for many in the market, and attention is now focused on whether the Organization of Petroleum Exporting Countries (OPEC) will alter production in order to influence prices higher. OPEC members are scheduled to meet at the end of November and will reportedly not hold an emergency meeting before then based on current prices, which has supported the bearish sentiment for crude oil. Additionally, while violence continues in Iraq, market watchers still assess the threat to oil production to be relatively limited. West Texas Intermediate (WTI) crude oil settled eight cents lower at $85.74 per barrel at the close of formal trading on the NYMEX. This is fifth consecutive settlement below $90 per barrel and the lowest price since December 2012.

Gas Prices Near 2014 Low

October 6th, 2014 by admin

Michael Green Contact Tile(WASHINGTON, October 6, 2014) The national average price for regular unleaded gasoline is $3.29 per gallon. This price is the least expensive daily average since February 9, it is just two cents above the low for 2014 ($3.27 on February 7), and it is the lowest price for this calendar day since 2010 ($2.75). Today’s average is a nickel less than one week ago, 15 cents less than one month ago, and six cents less than one year ago. The national average has fallen for each of the past 11 days and could drop as low as $3.10-$3.20 per gallon before the end of the year.

Avg-Gas-Prices-2011-2014

For the fourth consecutive week, Hawaii ($4.17) remains the only state with an average price above four dollars per gallon. The western United States continues to lead the market posting the highest prices per gallon, with Alaska ($3.89), California ($3.68), Oregon ($3.63), and Washington ($3.62) following Hawaii as the nation’s most expensive markets. As the national average continues to decline, a few states are registering averages approaching the three dollar mark. Drivers in Missouri are paying the lowest average per gallon ($3.01), followed by South Carolina ($3.06) and Mississippi ($3.07).  No state has registered a daily average of less than $3.00 per gallon since January 23 when Missouri was last below this threshold. Given relatively inexpensive crude prices, adequate supplies and cheaper winter-blend fuel, and barring any unexpected market-moving news, drivers in as many as 20 states could enjoy an average price of less than three dollars per gallon before the end of the year.

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After operating at reduced rates for two weeks, ExxonMobil successfully restarted a crude distillation unit over the weekend at its Torrance, California refinery. The unit was initially down due to an issue with the heater, and earlier attempts to restart the unit were delayed due to a leak on process equipment. Refinery issues were also resolved in the Gulf Coast where two refineries returned to service, after the combination of planned and unplanned maintenance to the fluid catalytic cracking (FCC) unit challenged operations. This caused motor gasoline production in the region to slow to its lowest level in over a year, however with supply returning to normal levels motorists near the Gulf Coast should see pump prices point lower again.

Week-over-week, the average price for retail gasoline is down in 48 states and Washington, D.C. Drivers in 19 states are saving a nickel or more per gallon over this same period, with consumers in the Midwest experiencing the largest savings: Michigan (-14 cents), Ohio (-12 cents) and Indiana (-12 cents). On the other side of this trend, the retail average is up in Louisiana (+2 cents) and Florida (fractions of a penny) over the past seven days.

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On the whole, motorists continue to pay less per gallon to refuel their vehicles. Month-over-month the average price has fallen in every state and Washington, D.C., led by the Midwestern states of Indiana (-37 cents), Michigan (-37 cents) and Ohio (-28 cents). Although the magnitude of monthly savings per gallon does vary from state to state, consumers in 41 states are saving a dime or more per gallon at the pump.

Year-over-year the average price is down in 45 states and Washington, D.C. Eighteen states are registering savings of a dime or more per gallon, with motorists in California  (-18 cents), Rhode Island (-17 cents) and Connecticut (-17 cents) experiencing the largest savings at the pump. Of the five states where the price has increased in comparison to this date last year, Georgia (+5 cents) is the only state where the increment is more than fractions of a penny.

Global oil prices have continued to slide as supplies have outpaced demand and markets remain relatively unmoved by geopolitical tensions in the Middle East, Europe and Africa. WTI did settle 60 cents higher at $90.34 per barrel at the close of today’s formal trading on the NYMEX, but remains near the low-price for the year. On Friday, for the first time in 17 months, West Texas Intermediate (WTI) settled below $90 per barrel, breaking a streak of 365 consecutive settlements above this threshold.

Gas Prices to Keep Dropping in October

September 30th, 2014 by admin

Michael Green

 

 

 

 

 

Consumers Paid the Cheapest September Gas Prices in Four Years

  • Drivers paid the lowest September gas prices since 2010 with the monthly average at $3.39 per gallon, which was about 13 cents less than last year and 44 cents less expensive than 2012.
  • “American drivers will have a bit more money to spend or use on savings as gas prices continue to fall,” said Avery Ash, AAA spokesman. “It is a nice relief for most of us to pay a little less than in recent years to fill up at the gas station.”
  • Gas prices have declined about ten cents per gallon since the beginning of the month with the daily average falling 24 out of 30 days in September. This is the fourth consecutive year that gas prices have fallen in September. Gas prices have dropped 35 cents per gallon since June 28 despite a busy travel season and conflict in the Middle East.
  • Gas prices generally have been less expensive than in recent years due to the dramatic boom in North American petroleum production. U.S. refineries have taken advantage of increased crude oil supplies to make more gasoline. In addition, increased domestic production has helped insulate U.S. consumers from conflicts and instability overseas.
  • Gas prices typically decline in September as the busy driving season ends and because many stations begin selling less costly winter-blend gasoline on September 16. As the weather grows cooler, summer-blend gasoline is no longer required in most areas to prevent gasoline evaporation and air-quality issues.
  • For the second year in a row, consumers caught a break in September with no Atlantic hurricanes striking the U.S. coastline. September is the peak period for the Atlantic hurricane season, and hurricanes can cause gas prices to rise significantly by disrupting refineries, pipelines and oil production.

 

U.S. Gas Stations Increasingly Selling Gas for Less than $3.00 Per Gallon

  • Gas stations selling gas for less than $3.00 per gallon are growing increasingly common in some parts of the country. Already, consumers can find at least one station selling gas for $3.00 or less in 26 states. Nearly four percent of U.S. stations are selling gas for $3.00 or less today, and this number should increase significantly over the next couple of months.
  • “Gas prices could fall another 20 cents per gallon by the time families load up the car for Thanksgiving,” continued Ash.  “If everything goes smoothly, buying gas for less than $3.00 per gallon should be refreshingly common in many parts of the country this winter.”
  • AAA expects the national average price of gas could drop to $3.10 – $3.20 per gallon before the year ends, which could be the closest that the national average has come to $3.00 since 2010. Last year, the national average reached a low of $3.18 per gallon on Nov. 12.
  • Fifteen states have average gas prices below $3.25 per gallon today, and many of these states could see average gas prices drop below $3.00 per gallon before the year ends. The lowest gas prices today are primarily in the Southeast and Central United States, which are regions that typically have lower gas taxes, access to domestic crude oil and abundant refinery capacity.
  • Oklahoma has the most stations with gas prices under $3.00 today with nearly 3 in 10 stations statewide selling gas for under that price. In fact, the most common price in Oklahoma today is $2.989 per gallon. The next two states with the most stations below $3.00 per gallon are South Carolina and Missouri where nearly 1 in 5 stations are below that price.
  • Gas prices typically decline from September through early winter due to declining demand as people drive less during colder months. While gas prices will not fall every day over that period, drivers should pay significantly lower prices in December than they are paying today.
  • It is possible that gas prices may remain relatively flat over the next week or two due to relatively heavy refinery maintenance. Seasonal maintenance can reduce refinery production and lead to tighter gasoline supplies. Refineries should complete most of this seasonal maintenance by the middle of October.
  • The average price of gas in October has declined three consecutive years by an average of 13 cents per gallon. Gas prices averaged $3.49 per gallon in October during the previous three years.
  • The peak period for Atlantic hurricanes has passed, but it is still possible for a late-season hurricane to disrupt production before the year is over. In late October 2012 for example, Hurricane Sandy struck the Northeast, which caused gas prices to rise significantly in New York, New Jersey and Connecticut. In New York City and Long Island, average gas prices climbed above $4.15 per gallon.

 

Daily Average Price of Gas Drops to a Seven-Month Low

  • The national average price of gas has fallen to $3.33 per gallon, which is the least expensive daily average since February 13, 2014.
  • Today’s average is the lowest for the final day of September in four years and about seven cents per gallon less expensive than a year ago.
  • The five states with the highest average prices today include: Hawaii ($4.20), Alaska ($3.92), California ($3.70), Washington ($3.69) and Oregon ($3.69). The five states with the lowest gas prices today include: Missouri ($3.09), South Carolina ($3.09), Mississippi ($3.10), Tennessee ($3.12) and Virginia ($3.13).

AAA updates fuel price averages daily at www.FuelGaugeReport.AAA.com. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline. For more information, contact Michael Green at 202-942-2082, mgreen@national.aaa.com

Heather HunterLabor market improvements and positive consumer expectations drive 1.3 percent increase in holiday travelers

ORLANDO, Fla., (August 21, 2014) – AAA Travel projects 34.7 million Americans will journey 50 miles or more from home during the Labor Day holiday weekend, the highest volume for the holiday since 2008 and a 1.3 percent increase over 2013. Nearly 86 percent of travelers (29.7 million) will celebrate the holiday with a final road trip before summer comes to a close and children head back to school. The Labor Day holiday travel period is defined as Thursday, August 28 to Monday, September 1.

Highlights from 2014 Labor Day Travel Forecast include:

  • Historically, when Labor Day weekend begins in August, Americans have shown a higher tendency to travel.
  • Consumer spending has surpassed income growth, indicating that Americans are willing to take on debt to finance a vacation.
  • Automobile travel will increase by 1.4 percent this year, with 29.7 million travelers hitting the road.
  • Nearly eight percent of travelers (2.65 million) will travel by air, a one percent increase from last year.
  • Travelers will encounter airfares just two percent higher than last year and daily car rental costs that remain consistent at $51.
  • Hotel rates at AAA Two Diamond hotels are nine percent higher than last year and Three Diamond hotels are six percent more.

Additional Resources

“As the economy makes modest gains, more Americans are joining the labor force this year,” said AAA Chief Operating Officer Marshall L. Doney. “With Labor Day symbolizing the American workers’ contributions to the strength and prosperity of our country, it’s only fitting that millions are choosing to celebrate this positive direction with an all-American road trip.”

Consumer spending is continuing to rise in spite of stagnant income growth. In the third quarter of this year spending is expected to increase 3.8 percent year-over-year, while disposable personal income is only expected to increase 1.4 percent. Reliance on credit cards, rather than increasing income, is fueling holiday travel spending this year. While economic growth is slow, consumers are feeling more comfortable taking on debt.

“This year, Americans are more optimistic about their financial situation,” continued Doney.  “Consumer spending continues to outpace disposable income, indicating that Americans are comfortable using their credit cards to take one last summer vacation this year.”

Travelers likely to pay lower gas prices for Labor Day

Most U.S. consumers are paying the lowest gas prices for early August since 2010. AAA expects gas prices to have little impact on the number of people traveling for Labor Day, though lower prices could help make travel more affordable.  Barring a major development, such as a Gulf Coast hurricane, prices are likely to remain relatively low leading up to the holiday weekend compared to recent years, which will allow travelers to allocate more of their budgets towards travel expenses. The current price of gas is $3.44 compared to $3.59 on Labor Day last year. AAA provides the latest gas prices for the nation, states and metro areas at FuelGaugeReport.AAA.com.

Airfare and hotel costs rise, car rental fees flat

According to AAA’s Leisure Travel Index, hotel rates for AAA Three Diamond lodgings are expected to increase six percent from one year ago with travelers spending an average of $171 per night compared to $161 last year. The average hotel rate for AAA Two Diamond hotels has risen nine percent with an average cost of $125 per night.

Weekend daily car rental rates will average $51, the same as last year. Airfares have risen two percent with the average round-trip, discounted fare for the top 40 U.S. routes costing $219, up from $214 last year.

AAA offers digital travel planning resources

AAA’s digital tools for travel planning ‘on the go’ include eTourBook guides for tablets and smartphones, available free to members at AAA.com/ebooks. Choose from 101 top North American destinations including cities, like the award-winning Las Vegas title, regions, like Wine Country, and National Parks.

The free AAA Mobile app for iPhone, iPad and Android offers GPS navigation to help travelers map a route, find current gas prices and find discounts, book a hotel and access AAA roadside assistance. Members using the iPad version can access interactive Top Destinations travel guides for 10 popular cities. Travelers can learn more at AAA.com/mobile.

On AAA.com, travelers can find thousands of AAA Approved and Diamond Rated hotels and restaurants using AAA’s TripTik Travel Planner or the searchable Travel Guides at AAA.com/Travel. Every AAA Approved establishment offers the assurance of acceptable cleanliness, comfort and hospitality, and ratings of One to Five Diamonds help travelers find the right match for amenities and services.

AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Colorado-based business information provider teamed with AAA in 2009 to jointly analyze travel trends during the major holidays. AAA has been reporting on holiday travel trends for more than two decades. More information including an infographic for the AAA / IHS Global Insight 2014 Labor Day Travel Forecast can be found here.

As North America’s largest motoring and leisure travel organization, AAA provides more than 54 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

Michael Green(WASHINGTON, July 7, 2014) The national average price of gas has fallen for ten straight days, but remains the highest price for this calendar date since 2008.  Yesterday, for the first time since June 11, the national average price for regular unleaded gasoline reflected a month-over-month discount.  Today’s average is $3.65 per gallon. This price is two cents less than one week ago and fractions of a penny less than one month ago, but it remains 18 cents more than this date in 2013.

National Average Gas Price Comparison 2011-2014 July 7 2014

With Independence Day in the books, this year’s holiday registered the highest price since 2008 at $3.66.  This surpassed the price per gallon for the holiday from each of the previous five years: 2013 ($3.48); 2012 ($3.34); 2011 ($3.57); 2010 ($2.74); and 2009 ($2.62), but was still well below the all-time-high for the date of $4.10 in 2008.

The pump price in four states continues register above $4.00 per gallon: Hawaii ($4.33), Alaska ($4.22), California ($4.14) and Washington State ($4.01). While prices in all but three states (Idaho, Wyoming and Utah) are higher than the same date last year, prices in 38 states have dropped over the past week, led by a handful of Midwestern states: Michigan (-10 cents), Ohio (-7 cents), Missouri (-6 cents), Kentucky (-6 cents), Illinois   (-5 cents) and Minnesota (-4 cents).  Prices over the past two weeks have been more evenly split.  Prices in 23 states and Washington, DC have increased – led by Alaska (+7 cents), Utah (+6 cents) and Idaho (+5 cents) – while prices in 27 states have fallen – led by Ohio (-17 cents), Indiana (-12 cents) and Illinois (-12 cents). With high wholesale gasoline prices beginning to subside in many parts of the country, AAA expects pump prices for many US motorists to continue to tick lower over the coming week.

10 Most Expensive Avg Gas Prices-6-30

Violence in Iraq continues to impact global oil prices, but as production in the south of the country remains unaffected, the fear of a disruption to supply has abated. Market watchers are keeping a close eye on the situation, but the risk premium that had pushed oil prices to 2014 highs has subsided in recent trading sessions. These elevated oil prices have meant stubbornly high pump prices for motorists, but as oil prices have eased retail gas prices have finally started to follow suit.

At the close of formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil settled 53 cents lower at $103.53.

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