AAA forecasts record Memorial Day drivers despite high gas prices

The American Automobile Association (AAA) expects 39.1 million people to travel at least 50 miles by car over Memorial Day weekend, the highest number in the past decade outside 2020, when forecasts were suspended due to COVID-19. This surge in travel comes despite gas prices averaging above $4.50 per gallon, up from $3.17 during the same period last year, according to AAA data. Gasoline prices are at their highest seasonal level on record, just 50 cents below the all-time peak set in June 2022. The rise in fuel costs is linked to global crude oil and refined product price surges, partly due to the ongoing conflict in Iran and disruptions in the Strait of Hormuz. AAA’s forecast reflects resilient travel demand despite economic pressures, with Patrick De Haan, head of petroleum analysis at GasBuddy, noting that people prioritize holiday travel even at elevated prices. He suggested that gas costs could reach $6 per gallon without significantly reducing travel plans. Discussions around a potential federal gasoline tax holiday have emerged, with President Trump expressing support for the idea on Monday. If implemented, such a measure could slightly ease fuel costs for drivers during the holiday weekend. The Memorial Day travel forecast underscores a broader trend of sustained consumer activity despite inflationary pressures, particularly in transportation costs.