The holiday season is in full swing, attracting an estimated 103.1 million American travelers, according to reports from AAA. An estimated 93.6 million Americans are expected to take a road trip during the 11-day period (12/23 - 1/2). Yet, despite the elevated demand for gasoline, prices at the pump remained unchanged throughout the Christmas weekend.
"Gas prices haven't moved in about 10 days, because oil prices have stabilized and the southeastern states are well supplied with gasoline," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Motorists should expect more of the same through the new year, unless oil prices rise this week."
Gas prices on Christmas day were the highest in two years. The average price on December 25, 2016 was $2.32 in Florida, $2.19 in Georgia, and $2.09 in Tennessee. These prices were more than last year's holiday averages by 31 cents in Florida, 27 cents in Georgia and 32 cents in Tennessee.
Heading into 2017, gasoline demand is expected to drop drastically during the month of January following the busy holiday travel season. Over the past five years, the average drop during that period has been 358,000 b/d or about 15-million gallons, according to OPIS. The oil information service estimates a larger dip this year. However, oil prices are about $20 higher than this time last year, which if unchanged, would prevent pump prices from falling 10-20 cents like they did during January 2016.
AAA estimates U.S. drivers have saved about $27 billion at the pump so far this year compared to the same period last year. Today’s national average price for a gallon of gasoline is $2.29, 29 cents more than the average price on New Year’s Day in 2016 ($2.00). Also on January 1, 2016, gas prices averaged $2.00 in Florida, $1.90 in Georgia, and $1.75 in Tennessee. Most U.S. drivers are expected to pay the second-cheapest New Year’s Day gas prices since 2009, when the national average was $1.62, and prices averaged $1.64 (FL), $1.51 (GA), and $1.47 (TN).
