Maynard Meyer
News Director
Phone: (320) 598-7301
Motorist Spending $65 More a Month for Gas, but that Won’t Stop Summer Travel
13 June 2018
BURNSVILLE, Minn. (June 13, 2018) – Consumers in Minnesota and Iowa are spending about $65 more a month to fill-up compared to last summer. According to AAA, residents of both states are spending an average of seven to eight percent of their income on gasoline, a one and half percent increase since summer of 2017. With strong summer consumer gasoline demand expected in the months ahead, AAA says motorists can expect little relief at the pump with the national gas price average ranging between $2.85 - $3.05 through Labor Day.
“Motorists can expect to spend at least $250 more on gas this season, but that won’t stop them from traveling. Summer is synonymous with road trips and vacation and we are not going to see Americans are giving up this pastime this year,” said Nick Jarmusz, director of public affairs for AAA. “The higher gas prices may just encourage travelers to shorten their driving distance. While others may pinch pennies by eating out less or finding more free family-fun activities while on vacation.”
According to a AAA survey conducted earlier this year, only one in three (33 percent) respondents said they would change travel plans if gas prices hit $3, while nearly half (47 percent) say $3.50 would be the game changer for their summer plans.
Then and Now Price Points: June 2017 vs. June 2018
As vacationers hit the road, they will find a quarter (25 percent) of all gas stations across the country are selling gas for more than $3/gallon. That is a stark difference from one year ago when only 5 percent of stations touted the $3 or more mark. The chart below compares the percentage of stations per state selling gas for $3.01 or more today versus one year ago.
State June 2017: Percentage of gas station selling $3.01+ June 2018: Percentage of gas station selling $3.01+
Alabama 0% 0%
Alaska 23% 100%
Arizona 1% 70%
Arkansas 0% 1%
California 53% 100%
Colorado 0% 13%
Connecticut 0% 82%
Delaware 0% 1%
District of Columbia 5% 36%
Florida 0% 4%
Georgia 0% 2%
Hawaii 34% 100%
Idaho 0% 99%
Illinois 0% 33%
Indiana 0% 5%
Iowa 0% 4%
Kansas 0% 0%
Kentucky 0% 15%
Louisiana 0% 1%
Maine 0% 12%
Maryland 0% 11%
Massachusetts 0% 20%
Michigan 0% 28%
Minnesota 0% 0%
Mississippi 0% 0%
Missouri 0% 0%
Montana 0% 15%
Nebraska 0% 11%
Nevada 11% 97%
New Hampshire 0% 2%
New Jersey 0% 26%
New Mexico 0% 19%
New York 1% 60%
North Carolina 0% 1%
North Dakota 0% 11%
Ohio 0% 0%
Oklahoma 0% 1%
Oregon 2% 98%
Pennsylvania 0% 66%
Rhode Island 0% 33%
South Carolina 0% 0%
South Dakota 0% 18%
Tennessee 0% 0%
Texas 0% 3%
Utah 1% 98%
Vermont 0% 4%
Virginia 0% 1%
Washington 12% 100%
West Virginia 0% 1%
Wisconsin 0% 4%
Wyoming 0% 25%
Don’t Let Your Tank Break Your Bank.
For when you are behind the wheel this summer, AAA offers these tips to improve your driving to get better gas mileage:
  • Observe the speed limit. Not only is it safer, it can help you save money.
  • Lose the weight. The heavier your car, the more fuel it uses.
  • Accelerate gradually. Avoid jackrabbit starts.
  • Drive during cooler parts of the day. Cooler, denser air can boost power and mileage.
  • Maintain recommended tire pressure. Low pressure reduces fuel economy and can damage tires.
The Outliers
Gas prices have shown some positive downward movement at the start of the month, but it is too early to determine if this is a trend. AAA has identified the following outliers that have the ability to drive gas prices – up or down – in the coming months.
  • OPEC - This year, global demand has outpaced global supply, which has driven the cost of crude oil to near-three year highs of $72/bbl in May. Since Memorial Day there have been conflicting reports that OPEC – which made a pact with other large producers to cut crude production in 2017 to help drain the then-glut of global supply – may or may not increase production to help ease supply concerns. The speculative news is already having a volatile impact, driving the price of crude down to $64/bbl and up to as high as $65/bbl levels in June. OPEC may announce a decision on increasing supply at its next meeting on June 22 in Vienna, Austria. Should OPEC and its partners increase supply motorists would likely see pump prices decrease late summer.
  • Hurricanes – Hurricane season is underway (June 1 - November 30). According to the National Oceanic and Atmospheric Administration (NOAA), there is a 75 percent chance of a “near- or above-normal” level of major storms this year. Moreover, NOAA’s forecasters predict a 70 percent chance of 10-16 named storms – of which five to nine could become hurricanes with winds of at least 74 miles per hour. The mere threat of a storm could force oil and gasoline companies, especially along the Gulf Coast, to halt gas operations, potentially leading to spikes in gas prices and limited regional supply.
  • Imports – Gasoline exports from the U.S. have grown throughout 2018. In fact, the Energy Information Administration’s (EIA’s) final measurement for March 2018 showed that exports hit 951,000 b/d and became the highest March rate on record. This trend is likely to continue throughout the summer, growing closer to one million b/d, which could help boost gas prices domestically because of robust demand. More than half of the U.S. gasoline exports go to Mexico, according to EIA.
  • Demand - According to the EIA’s latest reading for consumer gasoline demand, March 2018 saw nearly 9.45 million b/d, representing the strongest demand measurement for a March on record and a one percent increase from last year. AAA expects the high and potentially record-breaking consumer demand trend to continue through the summer, pushing prices higher.


About The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, financial services and travel offerings to over 9.5 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 58 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA clubs can be visited on the Internet at