USA – With America planning for Independence day weekend on 4th of July 2016, gas prices are about to witness hike after a decade. This 4th of July America is not encouraging their natives with lowest gas prices.
As per the analysts, average gasoline price in the US is expected to hit a low of $2.27 a gallon on coming Independence Day. Prices will hit a drop of around 50 cents as reported by GasBuddy.com – an online gasoline-price tracker. Lowest drop in gas prices was witnessed a decade ago in 2005.
Cheaper gas has saved US approximately US$20 billion in the current fiscal year when compared to 2015. Low fuel prices have made travel more affordable in the past few years as per AAA. According to a motor club, over 43 million US residents are expected to travel coming weekend.
Falling crude oil prices have resulted in the drop of Gas prices. Low price is also a result of abundant supply worldwide and more supply than demand ratio. The continuous US crude output is signs of slowing consumer consumption of fuel. American crude oil inventories are high as well as refinery production is rising. These productions have led to more supply than demand.