This Fourth of July, a record number of people are honoring the country through one of its most celebrated pastimes — the great American road trip — in spite of high gas prices.
Gas prices are hovering near historic highs even after retreating from the sharp spike that followed the war with Iran.
The national average for regular gasoline has fallen from a June peak above $4.56 a gallon as crude oil prices eased following the height of the conflict and the resumption of energy shipments through the Persian Gulf.
Even so, drivers are still paying a national average of $3.84 a gallon on average — nearly $1 more than before the war and enough to make this the third-costliest Independence Day period at the pump on record, trailing only 2022 and 2008.
The average price of gas in New York was $4.07 as of Friday.
The pinch isn’t keeping Americans off the road.
AAA expects a record 61.4 million people to travel by car over the holiday weekend, the second-busiest driving stretch of the year after Thanksgiving.
Instead of scrapping vacations, many families are opting for shorter getaways, destinations closer to home and fewer discretionary purchases like souvenirs to offset higher fuel bills, according to AAA.
The stubbornly high cost of filling up could become a political headache for President Donald Trump and congressional Republicans as November’s midterm elections draw closer.
A Gallup survey conducted during the first two weeks of june found that two-thirds of Americans say higher gasoline prices are causing financial strain, while nearly half reported changing their summer travel plans because of fuel costs.
Consumer confidence improved modestly in June as gasoline prices retreated, easing some concerns about the economy.
Trump has repeatedly predicted fuel prices would “drop like a rock” after the Middle East conflict ended and has accused retailers of failing to pass savings on to consumers quickly enough.
“Gasoline Retailers must get their Prices down, IMMEDIATELY!” Trump wrote in a June 29 social media post.
“If Retailers don’t do this, big problems lie ahead. Start targeting around the $2.50 a Gallon number.”
Economists say drivers shouldn’t expect prices to return to pre-war levels anytime soon.
Gas stations are still selling fuel they purchased when wholesale prices were much higher, creating a lag before lower oil prices reach consumers, said Sung Won Sohn, professor of finance and economics at Loyola Marymount University and chief economist at SS Economics.
“Until that gas is sold and exhausted, they are reluctant to lower the price,” he told The Post. “There’s a bit of a time delay.”
Even if fighting in the Middle East doesn’t resume, motorists could be waiting as long as six months before prices stabilize, he said.
“I doubt that we are going to see the price of gasoline coming back to what it was before the war, at least for a while,” Sohn said.
Lingering disruptions to Gulf shipping routes, elevated tanker insurance costs and unusually low global fuel inventories are also likely to keep prices elevated as supplies are gradually rebuilt, according to Sohn.
Higher gasoline prices are also hitting lower-income Americans the hardest, he said.
Unlike wealthier households that have benefited from rising stock prices and home values, lower-income consumers have little financial cushion to absorb higher fuel and grocery bills, Sohn explained.
“When they see higher prices for gasoline, they don’t feel as good. Their confidence goes down. They’re more cautious about spending,” he said.
