Gas prices drop ahead of 4th of July weekend

Record number of Americans are expected to travel this Independence Day weekend. (iStock)

The national average price for a gallon of gas was $3.54 for the week ending June 29, according to the latest report by AAA. That marked a four-cent drop from the previous week and could spell good news for motorists getting ready to travel for the 4th of July weekend.

"Drivers hitting the road for the Fourth of July holiday will find the gift of lower gas prices across most of the country," AAA said in its report.

Gas demand decreased from 9.38 to 9.31 million barrels a day last week, according to the Energy Information Administration (EIA). Additionally, total domestic gasoline stocks increased by 600,000 barrels to 220 million barrels.

"Lower gas demand amid increasing supply has helped to limit pump price increases," AAA said in its report. "If demand remains low, pump prices will likely continue to decline through next week."

Despite overall high gas prices, many Americans aren’t putting off summer travel this year, AAA reported.

"Gas prices are $1.30 per gallon less this year than last, but they are still high compared to historical averages," AAA spokesperson Andrew Gross said. "The previous record average high price for gas on July Fourth was $4.10 in 2008, while the low was $1.39 in 2001. Yet despite currently elevated prices, drivers are not cutting back on travel this summer."

If you want to cut costs on automobile travel this summer, it could benefit you to switch auto insurance providers and potentially lower your premiums. Visit Credible to get quotes from multiple companies, without affecting your credit score.

USED CAR PRICES SOAR AS DEMAND FOR LIMITED INVENTORY GROWS, REPORT SAYS

Where is gas the cheapest?

With the national average price for gas dipping last week, some areas saw sharper declines. Here are the 10 states which had the greatest decreases in their average prices, according to AAA.

Arizona (−16 cents)
Ohio (−11 cents)
Indiana (−11 cents)
Wisconsin (−11 cents)
Illinois (−9 cents)
Kentucky (−6 cents)
Nevada (−6 cents)
Georgia (−6 cents)
Utah (−6 cents)
Florida (−5 cents)

These are the top 10 least expensive markets, based on AAA's analysis.

Mississippi ($2.97)
Louisiana ($3.08)
Alabama ($3.10)
Tennessee ($3.10)
Arkansas ($3.11)
South Carolina ($3.17)
Texas ($3.18)
Oklahoma ($3.22)
Georgia ($3.23)
North Carolina ($3.25)

Comparing auto insurance providers could help lower your overall automobile costs. You can visit Credible to get your personalized rate in minutes.

4th of July travel to reach record numbers

Despite high inflation and fears of recession, many Americans are projected to travel in record numbers this 4th of July weekend, according to a study by AAA.

In fact, 50.7 million Americans are expected to travel 50 or more miles from home this 4th of July weekend, according to the study. That would break the previous July Fourth weekend travel record of 49 million people in 2019. In particular, about 43.2 million people are expected to drive to their destinations, AAA said. That would mark an increase of 2.4% from last year.

"We’ve never projected travel numbers this high for Independence Day weekend," AAA Senior Vice President Paula Twidale said in a statement. "What this tells us is that despite inventory being limited and some prices 50% higher, consumers are not cutting back on travel this summer. Many of them heeded our advice and booked early, another sign of strong travel demand."

If you’re looking to reduce your overall car costs, you could consider changing your auto insurance provider to help you lower your monthly payments. Visit Credible to speak with a car insurance expert and get your questions answered.

MORE AMERICANS SEEKING ADVICE FROM FINANCIAL INSTITUTIONS: REPORT

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.