Travelers make their way through the South Bend International Airport. AAA expects more than 816,000 Hoosiers to travel over the Labor Day weekend. (SBT Photo/SANTIAGO FLORES)
At a glance
Wally Tyner, agricultural economist with Purdue University, predicted for Memorial Day that summer gas prices would range from $3.40 to $3.90 per gallon in the Midwest. As of Wednesday, according to AAA Daily Fuel Gauge Report, prices are at $3.39 for regular unleaded in South Bend, according to AAA Travel. A year ago, prices were at $3.58. Nationally, they are $3.43 while in Indiana they are at $3.40. Prices did indeed go right up to $4 per gallon earlier this summer.
The reason the predictions have come in so accurately, Tyner said, is that crude oil has traded within about a $5 range for about a year now, despite all the global instability.
“The main reason for that is that the oil off the market from Iran, Iraq, Libya, etc. has largely been made up by increased U.S. production from shale oil,” Tyner said. “Total supply has been pretty stable, and global demand is actually down slightly from forecast due to slower global growth.”
If consumers are confident and in a bit of a comfort zone, they are going to travel.
Much like over the Memorial Day and the Fourth of July holidays, larger numbers are expected to take to the roads and airways than last year.
AAA Travel projects 34.7 million Americans will journey 50 miles or more from home during the Labor Day holiday weekend, which is defined as beginning today. It will be the highest volume for the holiday since 2008, and a 1.3 percent increase over 2013.
Travel is expected to increase significantly because the economy is continuing to turn around and spending has been on the rise the whole year, said Beth Mosher, spokeswoman with AAA Travel in the Chicagoland area. “People are feeling more comfortable in their job situations and people are spending their disposable income dollars.”
People also are willing to charge this type of weekend travel on their credit cards because they’re feeling steady in their jobs and more comfortable taking on debt, Mosher said.
Lower gas prices than last year also aren’t hurting. Prices in Indiana — including South Bend — are about 16-18 cents per gallon lower than a year ago.
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