Relatively low gas prices are boosting demand, with 2016 likely to be a record year for both gasoline consumption and miles traveled, Wilmington-based AAA Mid-Atlantic reported.
In Delaware, the price at the pump rose to $2.18 a gallon, up nine cents from a week ago. Many stations were charging $2.13 to $2.15 a gallon. Still, motorists were paying about 40 cents a gallon less than during the same period a year earlier.
Detailed price information is available from AAA’s Fuel Price Finder (AAA.com/fuelfinder).
.AAA estimates that U.S. drivers have saved nearly $12 billion on gas so far this year compared to the same period in 2015, and drivers this summer should pay the lowest gas prices in 12 years.
At the close of Friday’s formal trading session, West Texas Intermediate Crude was up $2.19 over last week, settling at $45.92.
Market fundamentals continue to point to extreme oversupply, though expectations of global demand growth or production cuts by major oil producers could lead to higher prices.
The Energy Information Administration (EIA) reports an increase in both crude oil and gasoline inventories. The global oil market is expected to remain well supplied, keeping the price at the pump relatively low compared to previous years.
“Gasoline demand continues to surpass 2015 year-to-date levels, as more drivers take to the roads as a result of lower gas prices,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “And lower prices will likely continue into the summer months as motorists are expected to pay some of the lowest prices for the summer months since 2004.”
According to a recent AAA survey, more than one-third of Americans (35 percent) are planning to take a family vacation of 50 miles or more away from home in the next 12 months. Fifty-five percent of Americans say they are more likely to take a road trip this year due to lower gas prices.
At the same time, a recovering economy and security concerns have led to predictions that summer air travel could be difficult in some instances. There have been scattered signs of lower fares in some markets as fuel prices remain low.
Philadelphia sees more competition from lower fare carriers like Frontier and Spirit, which have increased their flights from the airport.
