Rising oil prices and the upcoming holiday are adding to the price consumers pay at the pump.
As the July 4th holiday approaches, gas prices jumped last week to $3.50, AAA reported in its weekly gas prices report. This is five cents higher than the week before, but nine cents less than last month and six cents less than a year ago.
Although demand ticked down last week from 9.38 million barrels per day to 8.96, the upcoming holiday is poised to drive demand up significantly. Oil prices also rose past $80 per barrel, a significant contributor to the price of gas around the country.
"Summer got off to a slow start last week with low gas demand," AAA spokesperson Andrew Gross said. "But with a record 60 million travelers forecast to hit the road for the July 4th holiday, that number could pop over the next ten days. But will oil stay above $80 a barrel, or will it sag again? Stay tuned."
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As prices rise, some states have to deal with higher prices, while others still see prices hovering below $3. These 10 states below are the most expensive markets:
At the other end of the spectrum, here are the 10 least expensive markets:
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The upcoming election affects many aspects of everyday life in America — interest rates for auto loans included. About 66% of consumers and 82% of car dealers expect the outcome of the election will affect interest rates, a Cox Automotive study found.
"If shoppers believe interest rates will be lower in the future, or that the economy will be improving – or worsening – post-election, they are more likely to stay on the sidelines, waiting for the dust to settle," said Vanessa Ton, Cox Automotive senior manager of research and market intelligence.
"This new research reminds us that elections breed uncertainty, and when big-ticket purchases like automobiles are on the line, uncertainty is the enemy," Ton said.
Since President Biden has announced his electric vehicle mandates, many buyers are aware that his re-election could result in more strict mandates. Or should former President Trump be re-elected, these mandates could be revoked. In general, many respondents in the Cox Automotive study opposed government mandates on electric vehicles.
Inflation is also a major concern, and one that directly influences car prices and repairs. Nearly 74% of consumers and 81% of dealers believe the election will influence inflation and its effects. Should inflation persist, car buying may get more expensive.
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