An energy economist argued that Americans accepted the costs as demand for more travel is what is expected to hit a record high ahead of the Memorial Day weekend and summer season.
This summer is going to be very interesting, C 3 Solutions VP of Public Policy and The Heritage Foundation VP Nick Loris told Cavuto: Coast to Coast on Thursday.
Many families have had to cancel vacations over the past two years because they have been willing to pay higher prices because of the Pandemic. According to AAA, the national average of one gallon of gas was $4.60 on Thursday. It was priced at $3.03 -- $1.57 less last year. Americans are feeling the pain at the pump with record gas prices.
Loris said that families may be at the tipping point due to the gas price surge, suggesting that it's possible that they may change their minds or take smaller trips due to high costs.
JPMorgan announced last week in a research note that the average national retail price for a gallon of regular gasoline is projected to surpass $6 by the end of the summer.
Loris stressed that it was a rude wake-up call. The report states that if an increase in gas prices results in a reduction in non-gasoline spending, it has a ripple effect that will hurt businesses and families all over the country. Americans will continue to accept these gas prices until gas prices surge to $5 or $5.50 per gallon, according to Loris.
That's where I think Americans might start to change their minds about what they do, the energy economist said.
I just bought a flight to Ireland. I paid more than I wanted to, but I haven't traveled for vacation in the last two years, and I was willing to accept the higher prices I think a lot of American families are.