Gas Prices Rising as Summer Holiday Travel Begins

Summary

Petroleum analyst Patrick De Hahn warns that gasoline prices could hit $5/gallon if the Strait of Hormuz remains closed, with refinery issues and declining inventories adding upward pressure. Travel expert Clint Henderson notes that despite rising airfares and fuel costs, consumer demand remains strong but may soon break. The discussion covers gas price drivers, travel behavior, and tips for using points and miles.

• GasBuddy analyst predicts national gasoline average could reach $5/gallon by July 4 if Strait of Hormuz stays closed.
• Refinery outages in the Great Lakes and broader refining constraints are amplifying price risks.
• Jet fuel prices have eased slightly as refineries pivot production toward jet fuel.
• Travel demand remains resilient with record Memorial Day bookings despite 20-30% higher airfares.
• 32% of polled travelers say they may scale back summer plans if prices continue rising.
• Delta and other airlines have raised fares and bag fees multiple times without demand drop-off.
• Using points and miles is recommended to offset high cash fares, but avoid London due to fuel surcharges.
• California's gas prices are uniquely high due to state regulations and taxes.