TAMPA, Fla. — AAA forecast that 33 Million Americans would drive 50 miles or more during the Memorial Day weekend. Those motorists saw the lowest gasoline prices for the holiday in up to five years. The average prices in Florida and Tennessee were the lowest in five years; as the averages were 6 cents and 12 cents lower than 2010 respectively. The national and Georgia average prices just fell short of the five year mark; both averages today were merely 1-cent higher than the holiday averages in 2010.
"Oil and gas prices are much lower this year thanks to increased oil supply," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "This boosted disposable income which helped fuel the highest number of anticipated Memorial Day motorists in a decade."
The national average price for gasoline is still inching up while prices in the southeast have stalled. The average prices in Florida and Tennessee are fractions of a cent less than Sunday, while the Georgia average is exactly the same. Prices in Georgia were two cents higher than a week ago.
Gas prices should peak this month and even decline into the summer. The Energy Information Administration forecasts the national average price for gas this month to finish at its current average of $2.68, then average $2.55 this summer.
After peaking at $107.26 last year, the price of oil plunged as low as $45.19 this year, before rising 12% year-to-date and closing at $59.72 on Friday. Oil prices rose, which pushed gasoline higher, due to market concerns of reduced rig counts and higher than anticipated oil demand in both the U.S. and China. Last week, oil fell below $60 a barrel, as the dollar gained strength and rig counts only fell by one. Some oil analysts believe oil price may not return to $100 a barrel for years, and the current strength of oil prices are enough to entice a rebound in U.S. shale oil production, which could result in cheaper oil and gasoline.
