Despite record high gas prices, Americans are ready to hit the road for the Fourth of July.
According to the Automobile Association of America AAA, an estimated 47.9 million people will travel 50 miles or more this weekend, mostly by car travel.
Robert Sinclair, AAA northeast senior manager of public affairs, said that driving has always been the most popular transportation method for travelers.
Sinclair said on Yahoo Finance Live that it gives you the freedom to leave when you want. When the pandemic hit, all the health authorities said driving was the safest way to isolate yourself from other people to take a trip. The trend is continuing and growing. Americans are not dissented from taking the driver seat because of high gas prices. Since AAA began tracking the data, this year has the highest number of drivers according to Sinclair. The national average for gas prices is just under $5 a gallon, according to AAA data.
It looks like these high gasoline prices are going to be a long-term thing, Sinclair said. By high, I mean more than $4.00 a gallon with Mr. Putin continuing his military expansion and the sanctions from the European and Western nations as far as Russian crude oil is concerned. The Russia-Ukraine War is a major factor in high gas prices. Russia produces about 10 million barrels of crude oil a day, and global consumption is roughly 100 million barrels per day, making the country account for 10% of the entire market.
The Baker Hughes Rig Count, which tracks the number of active drilling rigs in the United States, has soared by nearly 60% from last June, Sinclair explains that supply can't meet the pace of demand. The price of crude oil CL F is up more than 43% year-to-date YTD We can't pull oil out of the ground fast enough to deal with all the extra demand we're seeing, Sinclair said.
Sinclair shared several tips for saving money at the pump.
He said gasoline stations are more expensive on or along highways, in affluent neighborhoods. When you're looking for gasoline, avoid those areas. The big box stores and the no-name brands tend to have the cheapest prices. He said that driving style and vehicle maintenance are also important to keep in mind.
Sinclair said a third of an engine's energy is used to overcome the rolling resistance of tires. For every pound per square inch that's underinflated, you lose 1% of your fuel economy, and that's per tire. Make sure all tires are pumped up properly. He noted that drivers should avoid any extra weight in their vehicles, as it leads to poor fuel economy and should be aware of their speed and driving style.
Sinclair said that for every five miles per hour you drive over 50 miles per hour on the highway, it's like adding $0.25 or $0.30 to the price of a gallon of gasoline. The engine has to work harder to overcome the increased wind resistance at higher speeds. He made your driving style more gentle. When you step on that gas when you're at a stoplight, you're using a lot of energy to get that vehicle that wants to resist moving along. It uses a lot of energy.