May 30, 2022 - Economy

U.S. gasoline prices hit new record on Memorial Day weekend

Herb Scribner

Gas prices at the pump. — Fuel prices at a Wawa gas station in Annapolis, Md. Photo: Joshua Roberts/Bloomberg via Getty Images

U.S. gasoline prices spiked to $4.619 per gallon as of Monday — a record high, according to the latest data from the American Automobile Association.

Why it matters: The new high comes during Memorial Day weekend and is about 52% higher than prices from last year, Bloomberg reports.

Context: Gas prices reached high levels ahead of Memorial Day weekend. Per CNN, gas prices adjusted for inflation haven't been this high on Memorial Day weekend since 2012.

AAA predicted 34.9 million people would travel by car over the holiday weekend, which is 3 million higher than 2021.

The other side: “I don’t think as many people are going to hit the road, and if they do, I think a good portion are going to be staying close to home,” Patrick De Haan, head of petroleum analysis at GasBuddy, told CNBC.

“There definitely should be a noticeable bump, but my impression is people are not driving as far. The concern is high prices that are keeping people a little closer. There’s also work-from-home that changed things. There’s a strong subset of people that can basically work from the road all the time.”

Flashback: Gas prices hit an all-time high of $4.37 a gallon earlier in May, which broke a record previously set in March, Axios' Jacob Knutson reports.

The rising prices put immediate pressure on the Biden administration to help customers.

Yes, but: Costs have continued to rise despite efforts by Biden to lower costs, Fortune reports.

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U.S. gasoline prices hit new record on Memorial Day weekend

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