FUEL FOR THE ROAD: Alabama below national average as prices rise

Published 6:00 am Thursday, July 1, 2021

Gas prices across the country have risen nearly $1 per gallon since last year, though it hasn’t seemed to stop travelers from taking to the roads, with record numbers forecast for the holiday weekend.

Prices in North Alabama averaged around $1.90 per gallon of regular unleaded in July 2020 and have since increased to around $2.75 per gallon, according to GasBuddy, which reviews fuel prices at more than 140,000 gas stations across North America. The national average is currently about $3.12 per gallon, up from around $2.20 last year.

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GasBuddy said the current prices are set to be the highest for the holiday weekend since 2014. Patrick De Haan, head of petroleum analysis at GasBuddy, said the price difference is due in part to the coronavirus pandemic.

“Gasoline demand has been very strong,” De Haan said. “… However, once market forces begin to balance, I expect prices to moderate this fall and over time, oil production will again rise, helping bring gas prices down to earth as soon as this fall, but the road may remain bumpy until the pandemic is behind us.”

Jeanette McGee, AAA spokesperson, said 89% of U.S. gas stations are selling regular unleaded for $2.75 or more, compared to 25% of stations selling for $2.25 or more this time last year.

But even with the higher cost and potential bumpy road ahead, AAA forecasts a record-breaking 43.6 million Americans will travel for Independence Day weekend, which it defines as starting today and ending Monday. It attributes the increase in travel and in gas prices in part to confidence in COVID-19 vaccination and the easing of travel restrictions.

AAA ranked Alabama as one of the 10 least expensive markets for fuel and oil, coming in fifth behind Mississippi, Louisiana, Texas and Arkansas.