The lowest holiday gas prices in years are music to the ears of the tens of millions of Americans finalizing their Thanksgiving travel plans this week.
More than 46 million people in the U.S. Plan to travel for this week’s holiday — the most since 2007 and a 4.2% increase over last year, according to AAA, which says 89% of those travelers will be driving. While the abundance of travelers may wreak havoc on highways, people who hit the road will have at least one thing to smile about: gas prices during this Thanksgiving holiday period will be at their lowest point in five years.
The average price at the pump for regular gas in the U.S. Is $2.81 a gallon, 46 cents less than this time last year, according to AAA. The average price at Thanksgiving in 2009, the last time fuel cost less, was $2.63.
Holiday drivers looking for the best deal on gas should head to South Carolina and Missouri, where the average price is the lowest in the U.S. At $2.57 per gallon. Hawaii has the highest average price at $3.91 for a gallon. As of Monday, AAA says that the average price of gas has dropped every day for 60 consecutive days.
As Coins2Dayhas noted previously, the ongoing drop in gas prices is largely attributable to the recent drop-off in oil prices due to oversupply in global markets.
There has been some optimism that lower gas prices will result in greater consumer spending during the holiday season, with the National Retail Federation predicting a 4.1% bump in holiday retail sales. However, Coins2Day recently speculated that money saved at the pump in the coming weeks won’t necessarily end up going to retailers, as lower gas prices could be offset by higher costs elsewhere, including the supermarket.
Still, several retailers have seen recent gains thanks, in part, to at least some investors predicting low gas prices will spur a holiday spending bonanza. Urban Outfitters (URBN) shares have gained almost 10% in the past month despite a disappointing earnings report last week, while Macy’s (M) and Best Buy (BBY) have also seen their stock prices increase in recent weeks after reporting strongquarterly earnings.