Gas prices are forecast to drop by up to 20 cents per gallon ahead of the July 4 holiday, but analysts allege relief at the pump is only temporary.
Analysis by fuel price tracker GasBuddy shows a gallon of gas costs $4.91-a-gallon, as of June 25.
That is down from an all-time high of $5.03 on June 13, with GasBuddy saying they expect the price to continue to fall – but only temporarily.
Despite the predicted decline, the reason for which has not been explained, fuel price tracker GasBuddy says Americans will pay the highest Independence Day gas prices ever.
GasBuddy experts also warn a ‘super spike’ in fuel prices is likely to occur later in the summer because the ‘volatility in markets remains high.’
The company’s latest forecast comes as President Joe Biden called Congress to suspend the federal gas tax through September – a plan Republicans oppose and even some Democrats dismiss, expressing concern the savings could end up in the pockets of oil companies instead of consumers.
Biden also called on oil companies to lower the cost of gas, arguing the nation is in a ‘time of war’ because of Putin’s invasion of Ukraine.
However, Federal Reserve Chair Jerome Powells commented and claimed Russia’ invasion of Ukraine was not the main driver of rising prices.
This GasBuddy price tracker shows that prices have begun to fall again since hitting an all-time high of $5.03 on June 13
Gas prices are forecast to drop by up to 20 cents per gallon ahead of the July 4 holiday, but analysts allege relief at the pump is only temporary. A photo taken on June 22 shows gas prices listed at over 7 dollars per gallon in Los Angeles, California
After culminating a national average fuel price of $5 per gallon just weeks ago, GasBuddy predicts US gas prices will drop 10 to 20 cents a gallon by July 4.
‘It’s been a scorching summer at the pump with record prices set in every state,’ said Patrick De Haan, head of petroleum analysis at GasBuddy, said.
‘Motors should know that while we may see small relief today, risks remain that prices could go up at a moment’s notice and set new records again.’
De Haan noted how several external factors could quickly influence the price of fuel in America.
‘While we may see relief as we approach July 4, and potentially after, the volatility in markets remains high,’ he explained. ‘We still could see a super spike in gas prices later this summer, should a hurricane threaten Gulf Coast oil refineries or oil platforms.’
It is unclear what led to GasBuddy’s prediction of an up to 20 cents per gallon drop as the company did not immediately respond to DailyMail.com’s request for clarification.
However, prices at the pump have been ticking down slightly since their peak on June 11.
Regardless of of the astronomical fuel prices, more than 58 percent of Americans are still planning to take a road trip this summer.
Thirty-three percent of Americans polled in a recent GasBuddy survey also revealed they planned their road trip specifically over the Fourth of July holiday weekend.
‘While we may see brief relief here and there, the high prices don’t seem to be holding many Americans back from hitting the road with the economy fully reopen,’ De Haan said.
Independence Day weekend will mark the second most popular travel weekend of the summer, following Memorial Day which saw over 34 million Americans hit the road.
And although many plan to travel over the upcoming holiday, GasBuddy reports 70 percent of drivers allegedly changed their summer road trip plans because of the high gas prices.
President Joe Biden called on oil companies to lower the cost of gas, arguing the nation is in a ‘time of war’
Biden tried address the fuel crisis Wednesday by calling on both Congress and oil companies to provide relief.
‘To the companies running gas stations and setting those prices at the pump, this is a time of war, global peril, Ukraine, this is not normal times. Bring down the price you are charging at the pump to reflect the price you are paying for the product,’ Biden said in a speech at the White House. ‘Do it now. Do it today. Your customers, the American people, they need relief now.’
Biden said gas prices have risen to $2 a gallon in the United States – the current average is $4.91 a gallon according to AAA – since Putin’s invasion of Ukraine.
He and his administration have repeatedly put the blame on the Russian president, calling the high costs of goods and services ‘Putin’s price hike.’
‘We could have turned a blind eye to Putin murderous ways. The price of gas wouldn’t have spiked the way it has,’ Biden said.
‘And it wasn’t just me. The American people understood. The American people rose to the moment. The American people did what they always had done, defend freedom around the world. They chose to stand with the people of Ukraine. We had near unanimous support in the Congress, Democrats, Republicans and independents for supporting Ukraine, knowing full well the cost,’ he said.
The record-high inflation rate has caused prices of food, gas and housing to spike in the US
Biden also called on states to temporarily suspend state fuel taxes, which are often higher than federal rates.
The administration wants Congress to suspend the federal gas tax – about 18 cents per gallon of gasoline and 24 cents per gallon of diesel – through the end of September, just ahead of the midterm elections.
Some vulnerable Democrats have been pushing for such a move ahead of the November election, which will decide control of Congress. The votes on Capitol Hill, however, may not be there.
Biden and his team have been weighing asking for a suspension for months amid increasing pressure to combat financial pain at the pump.
But experts have questioned just how much the suspension of the gas tax will save consumers – it is less than 5 per cent of the total cost at the pump.
Barack Obama, during the 2008 presidential campaign, called suspending the gas tax a ‘gimmick’ that allowed politicians to ‘say that they did something.’
Federal Reserve Chairman Jerome Powell broke with Biden, saying inflation was on the rise well before Russia invaded the Ukraine in February
In his Wednesday remarks, the president also addressed his critics who blame him and his economic policies for the record high inflation, which has caused prices of food, gas and housing to spike.
‘So for all those Republicans in Congress criticize me today for high gas prices in America. Are you now saying we were wrong to support Ukraine? Are you saying we were wrong to stand up to Putin are saying that we would rather have lower gas prices in America and Putin’s Iron Fist in Europe?,’ he said.
But in testimony on Capitol Hill on Wednesday, Federal Reserve Chairman Jerome Powell broke with Biden, saying inflation was on the rise well before Russia invaded the Ukraine in February.
Republican Senator Bill Hagerty of Tennessee asked Powell: ‘Given how inflation has escalated over the past 18 months, would you say that the war in Ukraine is the primary driver of inflation in America?’
‘No, inflation was high before — certainly before the war in Ukraine broke out,’ Powell responded.